Medical accountant Kym Nitschke shares some fundamental ways for medical practices to boost their efficiency and revenue.
As the owner of a medical practice, you don’t only have the responsibility to provide exceptional care to your patients, you also need to look after the welfare of your business.
Chances are you’re already juggling administrative tasks, dealing with financial reporting and tax, and trying to promote the practice, all between treating patients and looking after staff.
There’s no quick and easy fix to creating a sustainable business, but there are proven tactics that can make a difference.
Advice from an experienced accountant specialising in medical practice strategy is also a sure-fire way to turn your business into a booming one.
Below are some foundational tips to focus on in 2022.
Practice evaluation
It’s critical to continually review every aspect of your business, including revenue, expenses, staff and marketing efforts. This baseline assessment helps pinpoint the practice strengths and weaknesses while identifying potential opportunities and threats.
Next, prioritise what can realistically be accomplished in the short, medium and long term. There is only so much time available between patient consultations and day-to-day tasks.
To ensure that important investments such as hiring new staff or buying equipment are not missed, plan them into daily, monthly or yearly financial targets.
Build the business
Whether you’re a medical professional who owns the practice, or a business person who owns the practice, you need to get savvy about the business.
– Develop a business strategy and plan. This live document will be helpful if you want to apply for financing from lenders or banks, and keeps you accountable to your board, advisers and yourself.
– Measure business productivity. Some measurements to track include the cost per encounter (how much does it cost for a patient to come into the practice), the number of new patients, no shows and missed appointments, wait times, and return rates. And that’s not forgetting the patient and staff satisfaction levels. Comparing these numbers to past years can help you identify problem areas or understand if new measures are working.
– Create effective processes. All businesses have processes, the key is to improve them, so your patients are satisfied with the service, your staff are happier and perform better, and your business can increase.
Invest in marketing
Exceptional service is the backbone of referrals.
Is your practice delivering great health outcomes? Does each staff member treat patients with care and compassion?
An excellent way to find out if your patients are satisfied, and thus more likely to give a referral, is to gather feedback on their experience. Often it’s the small details, such as a timely follow-up phone call or a welcoming receptionist, that can make all the difference to an anxious patient.
Apart from word of mouth marketing, online marketing is a powerful tool to reach potential clients. Online patient testimonials and reviews are invaluable referral methods. In addition, a user-friendly website alongside targeted marketing is an excellent way for new patients to discover your practice. This is especially true of more specialist healthcare practices as increasing numbers of unsatisfied patients look online for medical answers.
Your local medical community is also a great avenue to reach new clients. Although this method can take more time and effort, building relationships with other local professionals is highly beneficial.
Build a team that adds value
The simple truth is, you can’t do everything. That’s why sourcing and training the right staff is critical to growing your practice.
Before hiring any staff, list any medical or operational gaps found in your practice. Alongside these more urgent needs, note opportunities that could expand the practice’s offering and patient base.
Once your priorities are decided, you can set about finding talent with a suitable skill set and culture. Take time when hiring as they’ll be an extension of yourself and the practice.
Although expensive and time-consuming, finding the right staff can free up invaluable time for you to focus on treating patients or working on the business side of the practice.
Get advice that delivers results
No matter where you are on your business journey, we can assist you build and expand your practice.
At Nitschke Nancarrow, we specialise in strategy and accounting for medical practices. We’re ready to help you, now.
Don’t delay getting the expert help you need. Contact us now.
Find out more about what we do for doctors along with medical practice advisory.
The information contained on this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Taxation, legal and other matters referred to on this website are of a general nature only and are based on Nitschke Nancarrow’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Nitschke Nancarrow specialises in accounting, tax and financial advice for superannuation. Contact us now for a no obligations discussion about your needs.
