Managing a private medical practice is a full-time job. In addition to providing care to patients on a regular basis, physicians must control the finances by routinely reviewing accounts receivable, manage spending on supplies, and regularly provide raises and bonuses for employees.
The majority of private medical practices align with corporate models in which physicians are stockholders. Alternately, physicians own the practice and hire other providers or practitioners. Private practice partners draw a salary, divide receipts after paying expenses and distribute funds periodically. This approach leaves very little taxes to pay at the end of the year through the corporation.
Managing your private medical practice requires developing an efficient and effective management plan that will allow you to achieve the goals and objectives that are unique to a successful, thriving and prosperous private practice. This technique will support establishing essential, ongoing referral relationships. Following are the top five benefits of managing your private medical practice.
1. A Cross-Trained Staff is a Loyal Staff
Managing personnel efficiently is the biggest area that can generate income. Some physicians hire family members, including their spouses, to help run their private practices. By cross-training employees, you can manage your practice in such a way that allows everyone to work more efficiently. That means that increased patient encounters enhance satisfaction because everyone is skilled and knowledgeable when it come to handling tasks such as scheduling appointments, retrieving medical records and escorting patients into an examination room. When your staff is busy and happy, office turnover is low and efficiency is high.
2. Ability to Generate Income by Spreading Out Fixed Expenses
Small private practices can develop and increase their income by producing additional revenue for supplementary products such as weight management, allergy control, nutrition supplements, hormone balance therapy and an on-site pharmacy. Alternately, stretching fixed costs across multiple physicians or expanding office hours means that you can enjoy greater authority when negotiating discounts with insurance companies, vaccine makers, medical suppliers and credit card processors. You can obtain volume discounts purchasing large quantities of supplies by consolidating expenses with other solo practitioners.
3. More Free Time
Private practitioners often feel that they must limit their free time because of the nature of the billable hours trade. However, instead of allowing for ongoing growth, this business design makes it challenging to take personal time or even to retire without the risk of losing capital. Having only one source of income leaves a physician unprotected in case of illness or other personal concerns that might limit face-to-face time with clients. Effectively managing your practice transforms the need for diversity to ensure a financially solid business better by recognizing the virtually limitless opportunities that exist to expand income and free time. Procedures that identify the variety of services, programs and products you have to offer your patients and developing a process for expanding those programs, products, and services creates just that.
4. Personal Satisfaction
The personal satisfaction factor is essential to successfully managing your private practice. Many new residents and established practitioners enter the medical field with a goal of running their own practice someday because that is what makes them happy. However, hefty student loans and additional financial circumstances frequently create a need for them to look for a guaranteed income and related perks of being an employee. Doctors should not look solely at the commercial gain they could net from selling their practice. They need to look inside themselves and ask will they be happy.
5. Autonomy and Mastery
Large conglomerate-owned or hospital-owned practices are big businesses that often have the same hierarchies and politics that are present in the corporate world. When you manage your private practice, you have two very important job qualities: autonomy and mastery. Autonomy gives you the ability to do what you think is best for the practice without having someone deciding it for your. Mastery provides an opportunity to become an expert at something that you enjoy doing.