{"id":924,"date":"2022-08-30T14:02:41","date_gmt":"2022-08-30T14:02:41","guid":{"rendered":"https:\/\/blog.advancedpracticemanagement.com\/blog\/?p=924"},"modified":"2022-08-30T14:02:41","modified_gmt":"2022-08-30T14:02:41","slug":"7-steps-to-boost-your-practice-profits-while-reducing-managed-care-ppos","status":"publish","type":"post","link":"https:\/\/blog.advancedpracticemanagement.com\/blog\/7-steps-to-boost-your-practice-profits-while-reducing-managed-care-ppos\/","title":{"rendered":"7 Steps To Boost Your Practice Profits While Reducing Managed Care (PPOs)"},"content":{"rendered":"
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By Bill Rossi*<\/strong><\/p>\n

In last month\u2019s article,\u00a0Managed Care Update<\/a>, we discussed strategies to minimize patient loss, and slow it down, when reducing managed care (PPO) participation. However, that\u2019s not enough. Doctors need concrete plans to rebuild their practice in order to counteract the patient loss and add mightily to their bottom line. This requires developing a plan for seeing more patients (measured by total exams) and doing more for the patients you do see (measured by production per exam).<\/p>\n

Seeing More Patients<\/strong><\/p>\n

An over-dependence on PPOs to keep your schedule full causes other parts of the practice to atrophy. It\u2019s time to get your practice in shape!<\/p>\n

While it isn\u2019t easy to increase new patient numbers, it\u2019s certainly possible with a little hard work. Here are the top strategies to make it happen, ranked in order of cost-effectiveness:<\/p>\n

1. Increase Internal Marketing<\/strong><\/p>\n

Virtually every doctor recognizes that internal marketing is the most cost-effective way to build his practice. Yet fewer than 10% of doctors feel they do a \u201cgood job\u201d in generating patient referrals. It\u2019s time to get good at it! Doctors must become more comfortable in asking satisfied patients to refer their family members, friends, and colleagues to the practice. This should be done at appropriate times (when a new patient joins the practice, when a patient compliments you or your staff, and upon completion of major cases). To get comfortable, consider this simply as an invitation to join your practice. And, add: \u201cPlease don\u2019t keep our practice a secret\u201d!<\/p>\n

Finally, the doctor should encourage staff members to refer new patients from their family, friends and colleagues. Be sure to establish a bonus program to reward their referrals.<\/p>\n

2. Improve Practice Signage<\/strong><\/p>\n

One of the best ways to attract more new patients is through adding or increasing practice signage to improve visibility. Remember, signage is the silent salesperson, providing a 24\/7 365 days a year image touting your practice. So, find out what legal restrictions (if any) your locality has on office signage and maximize your exposure with a well-lit sign.<\/p>\n

I\u2019ve seen patient numbers double simply through adding improved signage. So, get a sign up, so you don\u2019t have to \u201csign up.\u201d<\/p>\n

3. Upgrade Your Practice Facility<\/strong><\/p>\n

Remodeling and\/or implementing cosmetic upgrades to your office facility (new paint, carpet, wallpaper, etc.) is almost always a wise investment. Your practice will typically grow 10-15% through increased patient referrals, and improved case acceptance of upper-level procedures, providing a great return on investment.<\/p>\n

That means a large, attractive internally-lit sign, along with an engaging \u201cstorefront.\u201d Your visibility isn\u2019t just a matter of the signage, it\u2019s the whole presence of your office!<\/p>\n

4. Improve Your Online Presence<\/strong><\/p>\n

Doctors should enhance their online presence by upgrading their practice website, adding video testimonials, and original photographs of actual cases. This will help improve search engine optimization (SEO) as well as attract new patients. Also, increase favorable patient reviews since our research indicates that having 10 or more favorable (five-star) Google reviews can add measurably to your new patient flow.<\/p>\n

5. Practice Purchase\/Merger<\/strong><\/p>\n

If dropping managed care reduces the practice to operating at 70% or less of capacity, the doctor should purchase a practice and merge it into his own. Through treating the additional patients in your existing space, the purchaser can often generate incremental profits of 60-70% on the added volume before debt service, since there are no additional fixed costs, and the incremental lab, supply and labor costs are usually minimal. Even after deducting debt service payments, most doctors can still generate a 50% profit margin on the added volume purchased, making this a \u201cslam dunk\u201d investment.<\/p>\n

6. Boost Hygiene Department<\/strong><\/p>\n

Most of your patient flow comes from continuing care in the hygiene department. Many doctors feel they are already doing a good job with their continuing care system, but most aren\u2019t. For best results, use a \u201ccontinuing care checklist\u201d in order to track these statistics on a monthly basis:<\/p>\n