medical practice business

If you're thinking about selling your medical practice sometime relatively soon—say, within the next few years—there's no time like the present to give your business a thorough evaluation. By digging into the details of operations and finance, you will: Be better able to describe your business to prospective buyers Have a clearer idea of what the business is worth Perhaps most important, be able to make improvements now that could yield a higher price Regarding the last bullet: all practice businesses have some room to improve (nobody's perfect). Most have enough opportunity to build on strengths and correct inefficiencies to make a noticeable difference in the bottom line. This could be consequential for you even if you don't sell your business. (After all, most improvements you'll discover will be repeatable, so the financial upside will continue in the future.) But if you plan to sell, every increase in your bottom line has the potential to increase the price your practice can attract many times over. For example, if you discover that you're losing prospective patients due to front office turnover or correctable phone issues (maybe just a few patients, so you never noticed until you looked closely), fixing that problem creates new revenue possibilities immediately. Those new revenues don't require more costs, so your profits improve. Those improved profits are sustainable, meaning the financials you'll use to bring your business to market will look better—and attract better offers. There are many areas of a practice business that are candidates for quantitative analysis. On the revenue cycle side, many metrics from your EMR/PM system can be evaluated and improved to drive more revenue relatively painlessly. Understanding and improving your technology utilization (even just with the systems you already have) can usually unlock efficiency, and that extra efficiency can reduce stress while improving capacity. Correcting common coding errors can also yield an immediate revenue increase without any more work. These are just a few of the areas you could look at first. If you want to tackle this type of analysis yourself, our books are a great way to learn how to

I had an inspiring conversation with a young physician recently. He is looking forward to one day owning a practice. He envisions himself establishing a practice ethos that encourages colleagueship and respects physician excellence. “Expert culture,” he says, is the key to physician engagement and avoiding burnout. His passion was infectious. I can’t help be animated by the idea of brilliant doctors motivating each other to be even better! Moreover, like many of us in healthcare, I’m concerned about the rise in physician burnout, and I agree with this ambitious doctor that more respect for expertise could help alleviate it. But a question occurred to me as we were talking: What about applying the same thinking to the business side of medicine? The idea of setting a similar standard of professionalism for administration may not be intuitively obvious. It only makes sense that clinical expertise is king in our practices. Sometimes, though, even unintentionally, acknowledging this can translate into a more casual attitude about the administrative work being done to support the practice of medicine. This can mean that important business pillars of the practice are not as strong as they could be. This is not unique to medicine. It’s become a cliché that law firms, for example, often struggle with business management, despite being populated by brainy overachievers. Many fast-growing startups are created by smart people with an avid interest in a particular invention, technology, or service—and less interest in the daily nuts-and-bolts of management, which gets the short shrift. In all these examples, when management takes too much of a back seat, the financial success of the organization—and even the ability to achieve the core mission—may suffer. Adopting the same professional standards on the business side that you aim for on the clinical side can help avoid unnecessary costs. What’s more, it can encourage profitability and growth, building the value of your asset. It can also make your practice a much more pleasant place to work! So what are the hallmarks of a professional practice organization? Here are a few: Formalized, forward-thinking human resources policies Small businesses of

If your practice is looking to add new staff, either as replacements due to contagious "Great Resignation" exits or as you contemplate expansion, you're likely facing a tough labor market. Give yourself the best chance of attracting the right people by using all of the assets at your disposal—including presenting your location in its best possible light. Location may not seem like a particularly valuable asset for recruiting staff. Won’t job-seekers simply search for open positions near them? How can location be an advantage when, for most people, the city where they’ll work is a simple yea or nay decision? It’s unlikely staff workers will be lured from far away based solely on the city you’re in, but details about your specific location can make your job more attractive to the candidates looking for work in your community. Here are a few to consider spotlighting: Nearby amenities Many candidates will focus primarily on how far away your office is from their home, not realizing that the surroundings of the workplace can provide a lot of convenience and enjoyment. For example, if your office is close to amenities like a shopping district, promote that. In many locations, cities are working hard to lure businesses to re-energize their downtown neighborhoods--and so are the local businesses that populate these zones. A convenient downtown location can make it easy for staff to pick up essentials or just have a fun break during lunch. Burdensome errands like going to the post office, library, or DMV may be easier and more pleasant to accomplish. An affordable gym nearby can make it possible to squeeze in workouts before or after work. (Maybe you can even negotiate a membership discount for your staff.) And if your office is located near walking paths (or just in pleasant environs for strolling), staff can take advantage of that, too—and get fresh air and exercise during lunchtime for free. Office setting matters, too Is your office in or near a major medical center? Are you surrounded by many medical offices? This can be an advantage for job-seeking healthcare workers. Especially when starting

My two newest PracticeLink articles are on a subject that's top of my mind: burnout (what it is, how to spot it, how to respond, and how to think about it in the context of a job search). I had the chance to talk to several well-informed, passionate, thoughtful physicians in pulling the piece together. If you're interested in the subject, I'd love to hear any comments on the article that you care to share. The second, shorter piece is aimed at physician recruiters. (Is there anything I didn't say that you'd like to tell them about burnout?)   By the way, I've got at least four more PracticeLink features booked this year. I'm always looking for sources. If you're interested in commenting (and helping out residents and fellows who are starting their job searches), I'd be delighted to speak with you. (I promise it will be painless... dare I say it, even a little fun! Plus you'll be helping physicians who are just starting out by sharing what you've learned so far in your own career.) Some of the topics I'll be working on: different ways to practice (cruise ship? overseas? I'll be looking to learn about any practice settings that are outside the norm of expected physician recruiting) what to look for in a potential employer (beyond compensation) how to shine in your job interviews -- from first contact through the interview process what lawyers look for in physician employment contracts

Nearly all practices can benefit from improved communication.  In this column, I’ll be sharing some tips on forms of group communication.  Reaching out to groups within your practice can improve morale, invigorate and encourage problem solving and generally make your work life more pleasant and profitable. Reinforce what is important and solidify culture. Any opportunity to communicate with a group is an opportunity to build a common understanding of the goals and challenges facing the practice. Without this holistic understanding, how can you expect staff to show any initiative beyond their narrow job description? Accordingly, be sure to point out how staff’s activities advance your strategic objectives and how the practice is moving towards these goals together. Insist on engagement. Leadership can actively and consistently seek feedback from the entire staff in the most welcoming way possible. Staff is generally delighted to be consulted. Recognize any ideas they contribute as broadly as possible to help build cohesion. Along with asking for feedback, it’s critical to demonstrate a positive and receptive attitude to feedback - especially when it’s feedback that reflects critically on the management. This is precisely the information you need to hear most, because it’s likely in your personal blind spot. In the majority of practices we’ve visited, at least a few valuable ideas from staff go unrecognized and untapped. Occasionally, management even has a know-it-all or even a belittling attitude summed up well in a line from the Honeymooners – “I’m the boss and you’re nothing!” The response of “Congratulations, boss over nothing!” reflects how the healthy functioning of the practice relies on the competence and goodwill of all its contributors. Encourage accountability and reward commitment. Staff meetings and group memos present an opportunity to acknowledge accomplishments in full view of others. We strongly urge management to take every opportunity to thank staff in group contexts. A heartfelt thank you and even a modest gift, such as a $10 Starbucks gift card, can be surprisingly meaningful to staff that can feel invisible unless they make a mistake. Build and reinforce positivity. Since it’s unlikely a demoralized staff is

Practices have begun to resume services and urge patients to resume care, especially patients who’ve put it off because of anxiety about COVID-19. While ensuring (and communicating about) patient safety naturally takes center stage, the revenue side of practice management needs extra attention, too. Patients may hesitate to visit your office not just because of fear of infection, but because of financial concerns. Some patients face uncertainty about their job security. Some may have already suffered a job loss (and even a corresponding loss of insurance). For patients who are struggling financially, or simply anxious about money, anything but urgent health concerns may be pushed to the back burner—even though this might increase the risk of more dangerous problems down the road. Of course, practice managers and physician owners also have their own financial concerns to contend with. Generating and capturing revenue is crucial to ensure employees can be retained and the bottom line remains healthy, especially as government supports expire. The high cost-sharing many patients face may seem like a formidable obstacle when patients are already nervous. But there are ways you can shore up your practice’s financial picture and collect more effectively from patients—without jeopardizing your patient relationships. In fact, with the right efforts, your practice may be able to improve both your financial picture and the patient experience. Provide accurate information One way practices can help reassure patients is by helping them get a handle on their costs. Often, the out-of-pocket owed is less than patients fear. Even when it will be more than they hoped, patients will be better served by a straightforward and honest conversation about costs. Providing accurate information depends on staff training and technology. Be sure your schedulers are aware of how to access an up-to-date estimate of costs from your patients’ health plans. Proper training, including role-playing, can help staff become more comfortable with broaching financial terms. Sharing this information with patients at the time of scheduling also provides an opportunity to set up a credit card on-file to process payments after services are provided. Storing a credit card (in a PCI-compliant

In recent years, clients and friends of C&M have been involved in practice acquisitions or mergers. In many of these cases, a practice in a nearby area has come up for sale, perhaps due to retirement or death of a physician owner. These can be exciting opportunities, but stressful, too. There is usually pressure to respond quickly. And, of course, the decision usually involves a significant investment. (And one of the stressful aspects of it is that the total investment--not just the purchase price, but all costs involved, before, during, and after the transaction--can be hard to project and easy to underestimate.) The need to move fast often makes it hard to even think through all the questions you want to ask -- much less get answers to all of them. When the pressure's on, fear of missing out may take over. But if you move too fast, you may "win" the opportunity without realizing what it really costs. "Buying the practice down the street" may be a fantastic way to quickly expand your practice, but it's not without significant pitfalls. Information and a solid plan are your best tools for protecting your interests. In this short webinar (about 30 minutes), Laurie Morgan outlines some of the key questions to consider when deciding whether to buy a nearby practice. To view the recording, click this link. You'll be asked to register. Once you confirm, you'll receive a link to the video page. Once you've watched, we'd love to hear from you if you have questions. And, of course, we're at-the-ready to help you with consulting services before you make a purchase decision (or before you put your practice on the market). Use the contact form to email us or give us a call.

It may seem hard to believe—I know it does to me—but we’re approaching the last quarter of 2019. The summer season goes by fast, probably for obvious reasons, and when autumn arrives, it feels like it sneaked up on us.Of course, for many practices, there’s another reason it feels like a stealth attack by the calendar: the workload can go from one of the slowest times of the year to one of the busiest, seemingly overnight. This time of year can be crucial for your profitability. With many patients wanting to book services before the end of the calendar year, especially those who’ve met high deductibles, it’s an opportunity to meet patient needs and make more money. Now’s the time to plan how you’ll make the most of this busy time of year, without unnecessary stress. Here are some of our favorite tips for maximizing the upside of this season—while also staying well and enjoying what this high-productivity time of year. 1) Set a plan and get everyone on the same page Many of our practice clients seem to have an allergy to staff meetings! We understand the fear of wasted time. But at this crucial time of year, a group huddle can help make sure everyone knows what to expect and, above all, understands why the season is so important to practice health and stability. (This is likely obvious to physicians and practice managers, but it may not be to your staff.) Patients who know they’ve met their deductibles will be anxious to book care that they’ve put off. That means staff may need to be a little more patient when patients are less so. Patients will also likely be confused about their insurance, so making sure everyone knows the right way to answer their questions is critical (even if the right answer simply means knowing who to transfer their call to). If anyone on your staff is rusty on your technology capabilities or the billing/scheduling rules they’ll need to explain make sure you encourage them to speak up without feeling ashamed. Review your scripts and manuals, and assess

Since administrators play such a critical role in practices, recruiting a new one for your practice may provoke a fair bit of anxiety. If you’ve been left with little time, you may feel rushed. If your previous practice manager was a flop, you might even be feeling dread. Addressing the challenge head-on and systematically can help get you the result you desire. One familiar mistake we see is failing to define your needs thoroughly. This is not just a matter of “minimum of five years experience” – it’s a matter of understanding your practice’s mission, goals, and culture. It’s a matter of identifying what success looks like with the right administrator in place. Without mapping your practice’s needs and culture to a candidate’s qualifications and characteristics, you’re left merely hoping for a good outcome. Considering the lost time, productivity and general disruption that comes along with a poor hire, you need the odds in your favor. If you have infighting among your staff, which isn’t uncommon unfortunately, you may need a no-nonsense administrator with more of a hands-on approach as opposed to a spreadsheet genius who prefers to stay locked in her office all day. On the other hand, perhaps you have a mature and well-functioning staff and feel that you need a candidate with particularly strong financial management skills—for example, if growing your practice by adding a new office or even acquiring a competitor is on your agenda. Whatever you decide, you may want to create a spreadsheet table so that you can rate each candidates on the dimensions you think are most important - a simple 1-5 rating is a great start. You may want to use weighting as a tool to further refine your analysis. The old management saying of “be slow to hire and quick to fire” is useful to keep in mind along with some caveats. While it’s certainly important to find the best possible candidate, the cost of stop-gap management can be high. We see many practices where some staff is “temporarily” filling in as the practice administrator – often poorly attending to many

Many administrators and physicians struggle to find the optimal staffing level.  When patient volume is especially high or an employee has called in sick, it can seem like you’re horribly short-handed.  On the other hand, seeing staff idle can make physicians feel as though they are paying for nothing at all – hardly a comfortable thought when profits are being challenged in multiple fronts.   Evaluating your ongoing staffing needs in a methodical, evidence-based manner can be a challenge, but it’s well worth the time and trouble. While it’s natural to look to other medical practices to see how you compare, don’t give undue weight to such comparisons.  While staffing levels typically fall between 3-6 FTE staff per clinician, it’s underappreciated that the strongest, most profitable practices often have more staff per provider.  To the extent staff assists the physicians in working efficiently, they increase the revenue potential of the practice.  Every task that a physician does that a staff member could do is a lost opportunity.  When we visit our medical practice clients, we almost always notice productivity gains that could be made with existing practice staff.  If your practice is like most, you can benefit from looking carefully to see if more tasks can be done by staff generally.  And here’s a great little secret: if you have staff who sometimes feel a little bored or underappreciated, simply asking them how efficiency can be improved can yield immediate results. Even after decades of experience, we’re still surprised by how many excellent ideas can come from even the most junior staff.  But more than that, staff feels more valued, engaged, and committed to the practice when you recognize their knowledge by asking their opinions. Also keep in mind that there may be tasks staff would be motivated to do during brief down periods that are beneficial to your practice. For example, many practices fail to update their websites and social media on a regular basis. This type of work can be a perfect fit for slow times at the front desk if you have a person who has the enthusiasm

We've started a new website feature you might like. We're listing some of our favorite famous inspirational management quotes (along with a few of our own). Classic quotes are fun and useful because the gurus who said them figured out how to succinctly express management ideas that can sometimes be obscure in practice. One of our favorites deals with a brutal truth of managing employees: Peter Drucker's advice to "accept that we have to treat almost anybody as a volunteer." You've got the title and you sign the paychecks. In theory, that gives you a lot of leverage. You can insist on having everything your way, at least for a little while. Eventually, though, a dissatisfied employee can put on his or her walking shoes and go work somewhere else. This freedom to hit the road goes double for people in high demand. (Like, say, physicians in practically any specialty, or talented administrators or billers.) If you're finding your practice is experiencing a lot of turnover in key roles, it can be very costly for your business. And even before they leave, unhappy employees can harm your practice with low productivity, negativity, and, in extreme cases, even sabotage. So how can thinking of employees as "volunteers" help you improve morale and retain key people longer? Here are a few things to consider: The idea that employees are "volunteers" means more than just "they can leave." Modern employees want to be inspired by their work. They want workplaces that align with their values -- just as they would if donating their time. This doesn't mean you should retool your practice culture to match the preferences of every new hire. What's more important is to know your culture and be clear about it when hiring. That will help you avoid a costly revolving door of employees whose expectations weren't met. And what if you suspect parts of your culture or your work standards could use an upgrade? The upside of better morale and lower turnover is a good reason to consider making needed changes. Money is important. Make sure you're not notably

In recent years, many of our clients and friends have been involved in practice acquisitions or mergers. In many of these cases, a practice in a nearby area has come up for sale, perhaps due to retirement or death of a physician owner. These can be exciting opportunities, but stressful, too. There is usually pressure to respond quickly. And, of course, the decision usually involves a significant investment. The need to move fast often makes it hard to even think through all the questions you want to ask -- much less get answers to all of them. When the pressure's on, fear of missing the opportunity may take over. But if you move too fast, you may "win" the opportunity without realizing what it really costs. "Buying the practice down the street" may be a fantastic way to quickly expand your practice, but it's not without significant pitfalls. Information and a solid plan are your best tools for protecting your interests. In this short webinar (about 30 minutes), Laurie Morgan outlines some of the key questions to consider when deciding whether to buy a nearby practice. To view the recording, click the link. You'll be asked to register on the video page. Once you've watched, we'd love to hear from you if you have questions. And, of course, we're at-the-ready to help you with consulting services before you make a purchase decision (or before you put your practice on the market). Use the contact form to email us or give us a call.   "Should You Buy the Practice Down the Street?" [on-demand recording - registration required]  

You're in luck. Apparently, Amazon and Walmart can both ship you one for free! And at a great price, too!

We're grateful for the opportunities we've had to work with you, for your support of our books and presentations, and for the work you do keeping patients healthy. Our Thanksgiving tradition is to make a charitable donation on behalf of our clients and friends. Usually, we keep the focus on medical organizations. But this year, many of our neighbors in both Northern and Southern California have suffered terribly due to the devastating wildfires at both ends of our state. So we've decided to add organizations that provide relief to wildfire victims to our 2018 list, which includes: American Red Cross - Disaster Relief California Fire Foundation GlobalGiving - California Wildfire Relief Fund Conquer Cancer Foundation If charitable giving is part of your year-end traditions, we encourage you to give these options consideration. Resolved: A Prosperous 2019 Every January brings another opportunity for your practice business to have its best year ever. We're at the ready to help with fresh ideas; new books, webinars, and other content; and customized consulting. Trends suggest that independent medical practices are poised to resurge and thrive. The challenges that make it more difficult for complex conglomerates to efficiently and profitably provide quality care are becoming very clear. And burnout is a greater risk for physicians in high-pressure, low-control employment situations. Now is the time to turn your own practice into your ideal employer and your source of pride. It's easier and more cost-effective to work with us than ever. If you're ready to make 2019 the year your practice takes off on a more profitable, more rewarding, less stressful trajectory, let's talk! Year-end round-up: Did you miss these popular blog articles? These are the top five most-read posts on capko.com's blog this year. Click on the headlines to check them out: "It's everyone's responsibility,but no one's doing the job" "Improving front desk performance" "Reducing the cost of no-shows at your practice" "The power of your front desk to influence the patient experience -- and your reputation" "Fix the problem, not the blame"   Stay in touch and never miss a post! Here are

I just published an article for Phreesia's blog about how to make the most of year end (when many patients with fulfilled deductibles may rush to get care) and prepare for Q1 (when the deductible reset causes some patients to delay care). Please click here to read the article to get the full scoop. In a nutshell, here are the suggestions I made in the post: Alert patients to the deductible reset and the benefits of receiving services before December 31 Try to identify patients who opted to delay care earlier in the year and contact them personally Offer financing options for patients who need them Make sure your reminding approach is up to snuff Prepare to promote preventive services in January-March Consider how you might use the lighter load of Q1 to your advantage One additional idea to think about. Remember that you may feel your workload slow down in January and February, but the impact on your revenue will lag a bit. (In January, you'll still be collecting some payments from the end of the year.) So if cash flow is a concern, remember that you may still feel the pinch as late as April, depending on how quickly your volume rebounds. I also strongly recommend you use this time of year to review your technology set-up. Keeping patients informed about insurance, making it easy for patients to pay, and improving your practice productivity can all be made easier with the latest technology options. If you're not sure how to evaluate your technology infrastructure, Capko & Morgan can help with a cost-effective review. Contact us for more information about that.