How to increase efficiency, productivity and net profit in a private practice

There is an impression with healthcare practitioners everywhere that all a practice has to do to increase production is to increase the number of new patients. More new patients is often the universal solvent for an under-producing office.

However, attracting new patients is only 1 of 7 areas of a practice that lead to the efficiency, productivity and the overall net of a practice. There are 6 other areas of a practice that a doctor/practice owner can improve on to increase the profitability and gross income of an office without seeing a single increase in new patients. This does not mean that attracting new patients should be ignored, but what it does mean is that the other areas of the practice should be addressed with just as much importance as the new patient area. In order to improve those areas one must, for starters, know what those areas are. Below you will see the basic actions of each of these areas.

Personnel: A practice owner should know how to hire the right staff and know when and how to fire staff that aren’t productive. Holding onto non-compliant and under productive staff, at a time when unemployment is still high in most areas of the country and the employment pool is more qualified that it’s been in 25 years, is both poor management and foolish. A practice owner can learn how to monitor staff productivity and not judge staff on “feelings” or what other people say about certain staff. Learning how to objectively manage is a key to a productive, efficient and happy office. Part of this is knowing how to train staff on their jobs with proper job descriptions. Having known and applied office policy can make a staff operate in a coordinated fashion and work together as a team resulting in higher productivity and morale. How you hire, train, monitor and take care of your staff is the basic concept of this area. Making this area work properly requires good job descriptions and office policies that are known and understood by all staff as well as having effective statistical monitoring systems for all areas of the office, a good internal communication system and good communication skills by those managing the practice.

Treatment: Exams must be comprehensive and relationships must be built in a very limited amount of time. Value must be demonstrated through excellent care and communication by all personnel involved in any aspect of treatment delivery. Five minutes of sincere, honest and meaningful communication is worth more than 30 minutes of superficial chitchat. Treatment must be top notch using up to date methods and equipment. This area is the province of the doctor and where the “Doctor Hat” is worn.

Enrollment: A practice can increase the quality of case presentations and show more value for the services they are delivering through very simple, basic communication and sales skills. There is still plenty of money being spent these days. A practice must be better at showing value than a competitor down the street. A successful practice never makes a patient feel uncomfortable or pressured through poor case presentation and sales skills. Proper case presentation results in patients/clients knowing what they need and wanting the service and willing to look at how to work out the economics of the service needed. Also, having a good recall system and an excellent patient reactivation program can increase a practice’s production by one third or more.

Part two of this article will cover financial management, marketing, quality control actions, personnel and your actions as an owner and executive that are vital to running a more efficient and viable practice.

Fill out the form to the right and receive “How to increase efficiency, productivity and net profit in a private practice – Part II” (highly recommended). Scroll to top

hot-tips-tps-checkbox-1

Fill out the form to continue reading this article How to increase efficiency, productivity and net profit in a private practice – Part II (highly recommended).








Marketing and Promotion Ideas for Your Practice

In my nearly 23 years of delivering practice management training and consulting, I’ve found that of all of the marketing techniques available, properly asking for referrals is easily one of the most useful marketing and promotional ideas for your practice. There are several reasons for this:

  1. It is the least expensive. You don’t have to create and buy ads, make newsletters, send mailings, etc.
  2. It is something that you can directly affect on an ongoing daily basis and see and monitor the results without much time lapse.
  3. It is something that you can train all of your staff to do. You can create reward systems to enhance the staff to do more of it.
  4. You can, more than any other way, attract the type of patient/client that you want. If you analyze the patients/clients in your practice, you can quickly isolate those who are the most cooperative, financially secure and the most fun to have around. These people will, by referral, bring in similar types of new patients.

The whole trick to getting referrals is nothing more complicated than ASK FOR THEM. This can and should be done as a coordinated team effort by all staff. There are many successful actions that you can implement in order to accomplish this.

To get referrals, first, determine which patient/client will be approached. A quick staff meeting at the start of the day can identify patients/clients who’ve had great results and are very happy with their service. Those satisfied people are the ones that you would want to approach. Next, determine who will talk with one of these people. It may likely be the receptionist who will be talking with the person after their appointment. Lastly, work out a simple script that can be used and have a card ready to give out to the person that they can then give to their referral.

Other Marketing Ideas

The following is a list of other successful actions that you can do to promote your practice and get new patients. They are all very inexpensive and easy to do:

  • Ask for referrals!
  • Ask for referrals!
  • Ask for referrals! (ok, point made).
  • Send patients birthday cards.
  • Send out a quarterly newsletter that educates patients.
  • Put up a new patients/clients welcome board in the reception room.
  • Put up a “Thank you for referring” board in reception listing out the patients/clients who referred new patients to the practice.
  • Send thank you letters to every patient/client who referred anyone into the practice.
  • Reward referring patients/clients by sending them to dinner, the movies, etc.
  • Provide a staff reward for generating referrals.
  • The doctor and staff should hand out business cards anywhere and everywhere that is appropriate.
  • Post your practice mission statement in your reception room.
  • Make post-care calls to patients/clients to ensure that they are doing well. This shows you really care.
  • Give tours of the office to school children.
  • Offer family discounts for cash patients.
  • Put up educational posters in all treatment rooms or areas to educate patients about the health care you deliver.
  • Have TV monitors with educational videos that are on a continuous playback loop showing in reception and/or treatment rooms.
  • Have a patient/client appreciation month.
  • Participate in health fairs.
  • Give brisk service with lots of care and affinity.
  • Have all staff who are on the phone always “smile on the phone.”
  • Stay in good communication with any patient or client who is waiting – never let them just sit in silence for any long period.
  • Never make patients/clients wait. Deliver on time.
  • Call your patients/clients by name.
  • Develop a logo and place it in every possible place you can – letterhead, newsletter, business cards, posters, etc.
  • Call patients/clients 2 weeks and then 2 days prior to recall appointments.
  • Confirm appointments the day before.
  • Have simple informational pamphlets. Create your own if you have to.
  • Make follow-up calls after sending a postcard mailer.
  • Use over oversized or odd-sized business cards. People will notice and remember them more than a normal card.
  • Take photos of happy patients and clients and place them on the bulletin board.
  • Have the doctor write a column for a local newspaper or other publication addressing issues within your profession.
  • Share successful results of patient delivery with your staff.
  • Once per year, offer 10% off for payment in full on all old accounts receivables.

All of the above actions will cost you very little up front and will generate the highest quality patients for your practice. Put these into place and you will see your new patient numbers not only increase, but the quality of your patient base will increase.

If you would like no-cost, no-commitment tips on how to effectively implement this information into my practice, fill out the form to the right, and we will be more than happy to assist you.

hot-tips-tps-checkbox-1

If you are a practice owner and would like to receive either:

  • A Practice Owners Job Description pack (valued at $129)
    OR
  • A free one hour consultation on any practice management topic

In exchange for a 15 minutes, anonymous phone survey (at the day and time of your choosing), to assist in our upcoming publication by The Practice Solution Magazine (highly recommended). Fill out the below form.







Putting New Employees on the Job

Practice owners bring on new employees for a variety of reasons. Often, when practices are undergoing expansion of production and income, they require increased staffing. Or, due to poor past hiring procedures practice owners find that they have to replace some employees who are poor performers. There is a natural attrition rate as well when a staff member moves out of town, gets a higher paying job, etc.

Many past Practice Solution articles have been written on numerous aspects of our successful hiring procedures, including testing, how to conduct proper interviews, how to weed out non-qualified candidates, legally acceptable and unacceptable questions to ask, etc. You’ll find some of those articles in this issue of Hot Tip.This article will go over some of the best actions to implement when putting new employees on the job.

Once you’ve decided to hire a new staff member, the first thing to do is have them complete all appropriate paperwork. This would include signing whatever employment contract you use as well as having them read all of the appropriate office policies and attesting to having read them.

Personnel File

A personnel file is vital for maintaining proper documentation on every employee. You can set yourself up for legal problems in the future if you don’t have this properly in place. Therefore, creating a personnel file for the new employee is one of the first things you should do after hiring the person.

The office manager should create a personnel file for the new employee which contains:

  • The full job application and the resume turned in during the hiring process.
  • Any other forms used in the hiring process.
  • Any tests taken.
  • Any interview notes, write ups, etc.
  • Employment contract.
  • A copy of the policies the new employee read and signed.
  • A checklist of everything the office manager will be doing with the new employee to bring them onto the job. Make sure the checklist is filled out as each item is done.

As the new employee becomes a regular employee, the personnel file should be constantly updated with job reviews, disciplinary warnings, commendations, etc. The personnel file is your key management tool for documenting everything having to do with that employee, from the time they are hired until the time they leave, for whatever reason.

Request Part II: Putting New Employees on the Job – Part II (highly recommended) Scroll to top

 

hot-tips-tps-checkbox-1

Receive the Review Template now. Simply fill out the form below (highly recommended).