PRACTICE NEWS
Drop the C, D, and F clients as they are the source of most headaches. Tese include, but are not limited to, those that constantly complain about costs, many ‘breed- ers’, the ones that bounce checks, continually show up late, tell you how to practice medicine, are no-shows for appointments, bring the worst behaved patients in for ‘nail trims only’, etc. Tis is the main reason I don’t look at my schedule book very often - it makes my day sour until they come in and leave. I’ll tolerate a little rudeness from a client, but the first time they are disrespectful or yell at my staff, they are gone. Show your staff that you are willing to protect them; you’ll gain their respect an eliminate problems for everyone. (email me and I will give you a way to handle these clients).
Practice ONLY top-shelf medicine and surgery (like you were taught to do in school). Do not judge clients for their ability to pay for the best care. I promise, you’ll get burned. Offer the same quality treatment options to ev- ery client and let them decide what they would like to do - put the ball in their court, as it were. If they choose not to go with Plan A, move to Plan B or C. Tose that want the best care will usually find a way to pay for it. Let an- other practice provide mediocre care - this is not a race to the bottom. I have always contended that clients will pay you what you ask IF they feel they received great value. I understand that some pet owners cannot afford the best care options. However, do not lower your costs to acco- modate them. Tat is not fair to the others in your client base and erodes profitability. On that note, do not allow charging or give discounts to specified groups (shelters ex- empted). Once you open up the can of senior, multi-pet, breeder, and every other group, everybody else will want in on the action. We are not charities and these monetary losses come right off the bottom line.
Get your fee schedule aligned for your demographic area. Tat is, a fee schedule that is appropriate for the house- hold income for the circumference of 5-miles with your hospital in the center. In urban and suburban areas, it is not uncommon to have a significant gulf between the fees of two practices that are in the same zip code. Te offset usually can be explained by the specific cost-of-living in the two areas with rent/ home costs as the determinate. Yes, you can still be quite profitable in any area if you do it correctly. Additionally, phone shoppers are, on average, not generally going to become great clients. If they are searching for the cheapest hospital, they’ll likely be in the C, D, or F pool. Seek those that want the best care - not the ones looking for the lowest cost.
Lastly, you must charge for your time! Don’t give the one thing away that is unavailable online. We ultimately sell our expertise. Don’t rely on pharmaceuticals to drive your hospital. Historically, pharmacy income was always around 25 - 28% of gross revenue. With the online sellers and human pharmacies getting more of the pie, practices across the country are seeing this number fall to 20% or lower. To make up for this loss, service fees MUST go up. Profit is not a dirty word. Without it, none of us would have a job. Front-end fees (vaccines, office visits, laboratory, etc.) should be raised biannually, and back- end fees (surgery, radiography, ultrasound, dental work, etc.) should be raised quarterly. Te drugs that you do keep and dispense should be adjusted with every invoice (have you noticed almost everything goes up every time you purchase it?). It is also imperative that you have a dispensing fee.
With the limping ecomomy (despite that we are told that it is roaring back) we have many obstacles ahead. Do not get caught in a trap where your income is not keeping up with inflation (if you increased fees by 6% or less this year, you are losing money!). Stay engaged and work smarter, not harder.
© Copyright, JA Keith, 2023
If you, a colleague, or a loved one are dealing with alcohol, drug dependency or thoughts of suicide, it is time to talk to someone who understands and can help.
Over 30 years of experience.
Kentucky Professionals Recovery Network (KYPRN) is a free-standing organization that provides confidential monitoring of licensed professionals struggling with the disease of addiction. KY PRN
502-230-8442 – Emily Office Hours
Monday – Friday 9AM – 6PM
https://www.kyprn.com/ Spring 2023 27
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40
