Making Private Practice Profitable, Part III: Conversion StrategiesPosted on June 25th, 2018
Have you been following along so far? We’ve talked about the future of private practice and alternative revenue streams that PCPs and specialists can develop, so they can become the healthcare of the future.
One of my favorite parts of my job is helping physicians get more of what they want: issues like work-life balance, practice autonomy, and avoiding the hassles of an increasingly bureaucratic healthcare system are pretty common across the board, regardless of the specialty. I told you in my most recent post that if I had a tagline, it would be “keeping private practice profitable.” To accomplish this, unlike PCPs, specialists typically have two advantages. Number one, specialists usually have more ways to make profit from activities in their everyday experience. Number two, specialists also usually have a higher income and ability to hire consultants and experts.
As an informed and creative medical consultant, what do I usually recommend to my specialty physician groups who are looking for highly profitable ways to generate revenue? For my clients who are experiencing ripe market conditions, I recommend using a combination of merger and real estate to create options for future cash flow and ensure continuity of care. Read on for an example of this strategy for specialty physician groups in action.
This example is from the standpoint of two specialist medical practices that joined together to create not only a real estate project, but also four additional businesses. (more…)
Alternative Revenue Streams for Primary Care Physicians, Part II: Ancillary CarePosted on May 3rd, 2018
If primary care is to survive, it will need to find unique alternatives for ancillary revenue streams. While there are a few strategies PCPs can employ to cut costs and increase profitability, the real money-maker is in the long-term plan.
There are actually quite a few options to pursue here like a concierge practice (this option is worthy of a lengthy discussion in another post).But here are two quick examples I’d like to focus on that we have seen be successful and are available primarily through primary care practices. These examples are the Medical Weight Loss Clinic and BioTE hormone replacement therapy.
Catering to Specific Populations
The Center for Medical Weight Loss (CMWL) is a program that was created “to acknowledge and treat the unique, very personal challenges every person looking to lose weight faces.” See this link for more information about CMWL.
Anecdotally, I picked one of my clients who has worked with CMWL for nearly 10 years. They have seen a range of profits from a low of $20,000 to a high of $83,000 and average of $48,000 extra per physician, PER year. For this primary care practice type, current MGMA range for compensation is $250,000 to $280,000. The bottom line is that on average this ONE change for additional revenue could generate roughly 20 percent more per physician.
With the right population of patients, a primary care physician practice “can successfully manage and treat obese patients using behavioral modification techniques coupled with meal replacement diets.” (This from a study of Primary Care Clinics Versus Weight Loss Clinics.)
Three Strategies To Help Physicians Counter Rising CostsPosted on January 12th, 2018
In earlier posts, I discussed pressures on private practice, such as rising compliance costs, fewer younger doctors entering the profession, and larger, hospital-based health systems flourishing. The most important pressure (which comes by way of government mandate) I believe is the productivity loss of using an EMR. Through anecdotal research and observation, this productivity loss appears to be as much as 10 to 15 percent.
In this post I’ll attempt to outline my company’s, (MedExec Executive Management Corporation and Affiliated Companies “MedExec”) unique approach to these pressures. Regardless of the practice type, there are three general strategies that small physician practices can use to increase profitability and productivity.