You’ve worked hard all week; the office atmosphere is rife with discipline and brisk efficiency. The staff have been getting along with one another and you are proud of the team spirit they’ve both individually and collectively demonstrated. In fact, your staff has almost read your mind and anticipated your every need. All of the patients have arrived on time for their appointments, and the majority of them have even heeded your advice and accepted your treatment plans!
Now it’s Friday afternoon; the staff has received their paychecks, which reflect production bonuses that you’ve doled out in appreciation of their contribution to the overall increase in production. But then you look at your bank balance and you’re surprised and sorely disappointed at the lack of funds left over for you. What happened?
Where is your net profit? Did you work hard all week just to earn less money? The bank balance should be going up, not down!
You wonder if it’s worth all the effort. All of that increased production might just have landed you into a “higher office-overhead/higher tax-bracket” situation. It’s that frustrating income vortex — the place where, despite producing and collecting more, you take home the same amount or less. And following a few of these “successful” weeks, you shake your head and realize that if you endure much more of that kind of success, you’ll go broke! So, what should you do?
Let’s start by taking a look at the myriad of possibilities of what might have occurred that resulted in your not having any profit for yourself:
- Could you consolidate loans for equipment and/or your practice into just one loan, in order to reduce your monthly loan payment and possibly the interest amount?
- Can you reduce the amount of inventory the practice maintains?
- Are you collecting your Accounts Receivables with minimal aging? Do you collect at least 97% of the amounts billed?
- Do you have any sort of monitoring system that helps you to know at a glance, statistically, who is productive and who isn’t?
- Do you have written office policies that are known and enforced?
- Does each position in the office have a fully delineated job description?
To learn the 8 staff-related issues that can plague you and adversely affect your net income read the final half of this article by filling out this form (Highly Recommended).