As practice management consultants, we know that there are two big items that affect your bottom line: the money your practice brings in, and the money that your practice spends.
While the strategies that go into bringing in more patients is a whole separate strategy, let’s take a look at our top tips on how to save money in your medical practice. This will ultimately lead to more revenue if procedures are priced correctly and the staff effectively converts prospects to patients.
- Before making big marketing spends, make sure that you’re properly utilizing internal marketing first. This is also known as “invertising”. Are you consistently pushing out your practice’s message to your email database with strong, effective email marketing? Does your practice have customized brochures in your reception area that market your services… with YOUR logo and practice address? Are you utilizing videos in your reception area to market additional services to your patients? (Keep in mind that your patients may only be aware of the services they came in for, not other ancillary treatments.) Does each member of your staff know about each and every treatment in your practice well enough to properly educate patients, or do they feel that taking an educational approach is simply “too salesy” and they refuse? All of these things, and more, add up!
- Regularly evaluate existing expenses, such as credit card processing fees, biohazardous medical waste, patient financing fees and more. Get an annual comparison with the vendor’s you currently work with to make sure that you’re consistently getting the best price available based on your practice’s needs and ordering volume.
- Always negotiate before signing a new contract. This goes for vendor contracts, your practice’s lease, capital equipment and more! Be sure that you’re making a note of when each signed contract expires, and keep an eye out for auto renewal policies. We’ve had clients come to us because they were locked into lengthy, preposterous contracts (both in interest rate and term length) simply because they unknowingly let them renew automatically.
- Join a buyers’ club or group purchasing organization to save money on supplies you’re already purchasing. With many options available in today’s aesthetic market, look for a group that works for you based on your ordering needs. By joining a group buyer’s club or group purchasing organization, your practice is able to receive deeper discounts and rebates than it would have without the purchasing power of hundreds or thousands of practices across the country.
- Beware of theft in your practice. As a practice owner or manager, you’d be amazed at the ways that theft can occur inside your practice, right under your nose. Staff members may be stealing everything from your office supplies during back-to-school season to your injectables during the rest of the year. We once had a client whose physician assistant was stealing bottles of neurotoxin from the practice and injecting the practice’s patient in their homes, pocketing the money, and telling patients it was a new service that the practice offered. We’ve seen neurotoxin bottles diluted with water as staff member stole the actual product for themselves. We’ve seen pricy skincare products replaced with generic, drugstore brands. We’ve seen invoices sent for fake corporations created by staff members, to the practice that the bookkeeper unknowingly (or, in some cases, knowingly) paid. We’ve seen faulty deletion reports. In essence, we’ve seen it all.
How can you prevent theft inside your practice? Systems, systems, systems! The creation of checks and balance systems inside your practice is key.
Need help saving money, negotiating a contract or performing a theft evaluation in your practice? We’re happy to provide a free, 30 minute consult when you call 561-289-4640 or email us at [email protected]. More information on our services can be found at www.ShorrSolutions.com.
Mara Shorr, B.S., CAC II-XII, serves as the vice president of marketing and business development for Shorr Solutions. She is level II-XII certified aesthetic consultant, utilizing her knowledge and experience to help clients achieve their potential. She is also a national speaker and writer.
Jay A. Shorr, B.A., MBM-C, CAC I-XII, is the founder and managing partner of Shorr Solutions, assisting medical practices with the operational, financial, and administrative health of their business. He is also a professional motivational speaker, an advisor to the Certified Aesthetic Consultant Program, and a certified medical business manager from Florida Atlantic University.