Achieving scale can be difficult to define, let alone accomplish.
It can be a varied and challenging process for every organization because there are a multitude of areas that can be attributed to successfully scaling a business. One could argue even more so in a Medical Practice - the stakes are higher, and so detail and precision are critical.
Let’s take a look at some of the fundamental principles involved in scaling a medical practice. Aspects that both encompass, and affect numerous entities, including resources and system, through to physicians and doctors - and ultimately care fundamentals, and of course revenue.
First, let’s understand and define what we mean by ‘scale’ in this instance.
What is Scale?
In simple terms, creating scale is providing and creating more... with less. Achieved by making better and more streamlined use of staff and materials, better management of resources and of course underpinned by smart financial decisions. Each with the aim of providing greater productivity, and effectiveness.
In a Medical Practice, it’s easy to reach a plateau, taking the leap to scale further requires planning and expertise, otherwise, it can quickly fail, or turn into a straight forward cost-saving exercise - that can end badly.
The goal here isn’t to do what you do now - but with reduced costs, that’s a different exercise entirely. The goal of ‘scale’ is to do MORE than you do now, with better use of new and existing tools, effective staff roles and use of resources. Whilst, with guidance, understanding what to increase and what to decrease in order to reap additional gains.
To help, here are some areas to target that will support the scaling model, and where we’d suggest starting as part of an initial assessment. There are many more, but here’s a flavor...
Employ Better Management Techniques
To achieve exponential gains in a Medical Practice, the one defining resource you have which will make the greatest difference is your staff. They’ll be your most valued asset in any transition, and key in providing effective scale.
Employ new and updated management techniques, designed to empower your staff to achieve, giving them new and better tools to achieve them and helping them understand the reasons, and rewards for such endeavors could ultimately determine your level of success.
Defining key roles, with achievable targeted results will enable your staff to take ownership of and drive a scaling project forward. Encompass them in the positive need to change, reassure them of their part in this growth and harness teamwork, these are the aspects that will motivate your staff to think bigger.
Outsource Where Possible
Outsourcing can at first seem like a large and unnecessary cost. But outsourcing has finally come of age in recent years. If handled sensitively and practically, the costs to gains ratio can be very effective - when utilized in the right circumstances.
For example, employing staff to deal with collections can actually be less effective where in fact they might be far more productive elsewhere ...if so, then it makes sense to outsource collections.
Benefits of Outsourcing:
- Introduces economies of scale
- Flexible and reactive output
- Efficient and specialized task handling
- Reduced labor and/or material costs
- Releasing in-house resources to conduct more critical tasks
Re-Negotiate Contracts
We said achieving Scale is not a purely cost-cutting exercise, but inevitably scrutinizing costs and cost-cutting would form a logical part of our overall plan.
Use this change management opportunity to re-evaluate contracts across the organization. As part of an effective financial plan; obtain the right guidance to review, evaluate, and tackle contracts as a key area for redefining many of your baseline costs.
There are numerous ways to save money in any medical practice - without compromising on efficiencies and services. Regardless if it’s a small office with a single Doctor or a large practice with 20+ Physicians. You could save thousands of dollars with some simple targeted changes.
Healthcare Business Consultants
It’s not ideal for staff to be responsible for negotiating reimbursement rates with payors, consider using the skills of a Healthcare Business Consultant, or at the very least undertake this task yourself.
As well as re-evaluating reimbursement procedures, a Healthcare Business Consultant will examine the efficiency, profits, and structure of the organization as a whole and suggest routes for improvement.
Concierge Model
Local demographics can play a beneficial role in Scaling your Medical Practice. In affluent areas with higher income levels consider transitioning to a Concierge Practice Model, or even creating multiple entities. With professional guidance, this can be implemented within a short space of time.
A Concierge Model:
- Will directly reduce your overhead
- Positively affect revenue, service, and efficiency
- Regulate and Manage workload
- Help key staff refocus on critical practice tasks
- Create a better work-life balance for staff
There are a host of ways to scale your medical Practice. In later articles, we’ll discuss how introducing latest technology can be a positive factor for growth, and how to improve workflow and collaboration.
But, to do all or any of these things effectively and efficiently first requires some in-depth analysis, followed up with strategic planning... but we hope this has at least provided some insight.
When to Scale Your Medical Practice
The critical questions to ask here are, how do you know if the time is right for scaling up, and where do you start? Well that parts easy, simply get in touch with us, we’ll be happy to schedule an appointment and offer our expert advice totally free.
