These are 5 simple business principles every practice owner should be focused on in their practice:
1. Daily management reporting: As a business owner, you should track data points in the form of daily, weekly, monthly, and annual reports. These reports provide checkpoints with valuable feedback indicating whether or not you are on track to meet your business goals. You can’t improve your numbers if you are not tracking them.
Tony Macaluso, PT from New Orleans, attributes daily management reporting to his success stating, “I’ve become a proactive business owner, not reactive. If my numbers aren’t where they need to be, I know WHY.” Tony has grown his practice 28% without spending a penny marketing, see how here.
2. On Point Recruiting & Training: Did you know 67% of management comes down to recruiting and training of your employees? With such a competitive market hiring PTs, it can be challenging finding the right people for your practice. That’s why it’s crucial to spend a significant amount of your time recruiting and training (as surprising as this may seem).
Eric Bjorkman, a PT from Lincoln, NE realized how important recruiting and training was, and actually said he was just “Hiring help when it seemed busy, but not really knowing what defined busy… I now have a plan for staffing, knowing what “busy” actually means and when to add more people.” Eric has grown his practice 45%, and has is nearing $100 per unique patient in cash sales.
3. Billing and Collections: Though a career in physical therapy may be intrinsically rewarding, you must remember you are a business owner too. Doesn’t it seem fair to be paid what you deserve for the services you provide? Additionally, in order to keep your doors open, you must focus on managing a successful business. If you aren’t receiving compensation for the services you provide to your patients, this makes it very challenging. Billing and collections are the lifeline of your practice. Having the right systems in place is crucial for the success of your private practice. Chris Mulvey, PT from Fort Myers, FL describes how quickly his business matured after implementing effective billing & collections in his practice. “During my first month, I increased my revenue by 30%. During my second month, I grew another 30% and then another 40% by the end of the third month.
4. Nurture referral relationships: The relationship between physicians and physical therapists is special because you share a patient population that relies on you for their healthcare needs. Knowing your referring physicians and their specialties allows you to refer patients who may need prescriptions or orthopedic surgery for example. These physicians are likely to refer patients back to you, especially if they can quickly remember your name or your clinic name. These relationships are priceless. In fact, Risa Hofmeister and Mike Bryant of Omaha, NE have increased their referrals with the addition of new programs and services. Risa states, “I am actually now referring to physicians in the area, not just receiving referrals. This has helped me build a lot of reciprocal relationships in my area, create ongoing cash based patient relationships, and is something I’ve never been able to do prior to FYZICAL” Risa runs a $10 million PT practice.
5. Reduce Cancellations: Reducing cancellations can be as easy as knowing what to say to your client to keep them coming back. The messages you send your patients should propel them to comply with their plan of treatment. Did you know there are actually 7 Steps to Reducing Cancellations being used to significantly reduce cancellation percentage across the country? Brian & Melinda Sganga, from Lake City, FL implemented these 7 Steps, and are projected to gross over $1 million in their physical therapy practice this year. Brian states, “When we implemented the 7 steps to reducing cancellations, our cancellation percentage went from 20%, down to 6%. Before we learned these techniques, we had no idea how much money was walking out the door… or, in our case, cancelling before ever walking in.”
There is a simple way to implement all of them (and then some). You’ll see how at PT Revolution.