Your Practice is Only as Valuable as Your Referral BaseWritten by Shaun Kirk, MHS, PT, MTC
Many physical therapists in private practice have appearance of a very successful business that is built on backs of about four to five doctors. Now if anything would happen to any of these guys, value of these practices would drop markedly. How can you run a practice for many years and then take a good look at it and realize that you have five doctors that represent more than 50% of referral base? Exactly how can that happen? Well, it’s quite simple really. When you start your practice you have a couple doctors who kind of like you and offer to send you some patients. When numbers are down and you’ve got to go out and stimulate more referrals, it sure is a lot easier to go and talk to guys who already love you and are referring and try to get them to send more. If you’re very successful at doing just that, what ends up happening is group of doctors that you’ve gone out and knocked on their doors and spoke to end up sending you quite a bit more. Well, that is always great provided that doctors always love you, decide to never open their own practice, and do not die. What if there was a way that you could broaden your referral base and get many doctors sending you a few new patients every month to create a more long term stability, so when one goes on vacation stats don’t crash? In order to understand how things work in regard to getting business and growing your practice, you have to take a good honest look at what does not work consistently with every private practice physical therapist. For example, we go out and knock on doors of doctor’s offices when we don’t know doctor and doctor does not know us. We think that we are going to get this opportunity to sit down and talk to him and he will just be elated and send us droves and droves of new patients. Deep down we know that if doctor doesn’t already love us he’s really not interested in talking to us, but yet we go out and do it anyway. Now let’s draw a parallel to a vendor that comes in wanting to sell you some piece of equipment, say an e-stim machine. The guy comes in, he brings his device with him, and he sits in waiting room and waits for you. You come out and say hello. You talk to him for a few minutes and you have no interest whatsoever in buying another e-stim machine. But instead of telling him you’re not interested, you’re polite and you ask a lot of questions about it. You ask how much it is and are their any kind of payment plans for it, etc. But you know you’re not going to buy it. Why? Well, one, you may not need it and two you may have a vendor you prefer to work with. But it’s somewhat rude to tell guy to get lost. It’s same thing with doctors. If you get an opportunity to meet with doctor he or she most likely is not going to be rude with you. They’re going to ask questions like; "Tell me a little about your practice?" And you will go on explaining your philosophy and what kind of treatment that you do and all letters after your name and what makes you better than anybody else. Have you ever noticed that when you’re talking he’s looking at his watch? He’s got his hand on wall, leaning towards door and yet you continue on. It’s same kind of thing you do when vendor starts talking to you about that e-stim machine. You say “Well, tell me a little about it.” And you look at your watch and you lean towards door and you dart your eyes left and right towards other patients or other staff hoping that someone will bail you out. Doctors do same thing. Hopefully we can see that. There are exceptions to this of course. There are doctors who know you and love you. They know your good work and know of your competence. Those guys you actually can go and sit down and talk to them and they will be interested in what you have to say because they know you’re good and they know you get results. Doctors who don’t know that will pretend to be interested in what you have to say.
| | Are You in Control of Your Practice or Does it Control You?Written by Shaun Kirk, MHS, PT, MTC
One of most common complaints that business owners have today is that they feel their practice is running them and that they’re being pulled in every direction instead of really running business themselves. Well, I’d like to tell you, when I was in practice I experienced same thing. I was working too many hours, not seeing my family as much as I should; my staff always came to me looking for solutions to day-to-day scenarios and so on. I found I was lacking amount of time necessary to really do what I loved best which was working with my patients, seeing their results and being able to live life. After 5 years of burning wick at both ends, I decided something needed to change quickly because my candle was getting ready to burn out. I realized that in midst of running my business with all its stresses and being a husband and father, I needed to get my priorities straight, re-evaluate my purposes and really become very best administrator possible to make my practice and personal life efficient and enjoyable again. You’re probably thinking what you’re going through is normal or that’s just way it’s always been or supposed to be. Take a patient who’s had headaches all this life and has lived on drugs to handle it. As a physical therapist, I know there is a solution to that and that he doesn’t have to live with headaches or be on drugs. Well, I’m telling you same thing. It’s not normal, that’s not way it is and you don’t have to live with these administrative difficulties or be controlled by your business. So, how do you change it and get off roller-coaster ride? There are a few important factors to look at in order to accomplish this. First, take a look at why you became a business owner in first place. Are you fulfilling that dream way you envisioned it in its entirety? Now, look at everything that is not optimum or that you’re experiencing that is not part of your dream. Look at things such as: Are you spending enough quality time with your clients without interruption? Do you spend time with your family? Does your staff know their positions fully? Does your staff put problems or situations on your plate that you need to now solve? Does your staff get along or are you a mediator to their continuous problems? Are you working too many hours and lacking return? Are you pounding pavement to generate more referrals with little to no success? Are you behind in your financial plans or goals? These are to name just a few of common areas of concerns that business owners face. Take a look at those things that come to top of your mind that concern you most. Then prioritize those things which are causing most difficulty for you in your business or life.
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