Practical Solutions
New Year's Resolutions-Stop Then Go to Succeed
posted 2/4/10

By Victor Miller, Vital Signs
757-876-3208

STOP!! 

I advise all of my clients to STOP and take stock of what took place in the practice in 2009 – the good, the bad, and the regrettable.

STOPPING is both personally and professionally a healthy thing to do. Building in some quiet time at the end of each year proves beneficial to all the team members and helps bind them together for the heavy lifting of the New Year.

Unfortunately most practices do not take time to STOP and reflect on the year that was. By reflecting, I mean, set aside a full day for the partners, providers, administrator and your CPA to discuss 2009 and the state of the practice going into 2010 (you may want to include your attorney and consultant).

In my experience those practices who do take time to reflect and plan tend to deal with developments during the year better than a practice that has no plan and just never stops. Without a plan there is no destination….so you never arrive. The ship of state (the practice) simply drifts from one month to another. Therefore STOP and plot your course. Experience is a great teacher – let the data from 2009 be your guide.

If you think STOPPING is a good idea but you are not certain how to structure the STOP, here are a few ideas for conducting the meeting:

First agree on a meeting leader (administrator / consultant), date and place – for the first timers you would benefit from hiring a practice management consultant – they have no bias, they structure the meeting, keep it on track and issue a summary report.

Next, create an agenda and circulate it among the proposed attendees for comments.

Finally, have the meeting, take notes and publish a recap of discussions, decisions and timelines to all the “need to know” individuals.

Important: All decisions should have a date specific and someone appointed / empowered to keep all informed and to get there assignment done.

Compare 2009 vs. 2008 data in the following areas – You will want to discuss reasons for variations, both good and bad. Where called for, agree on remedial measures and resolve to continue to accelerate the good data.

Below is a STOP agenda sample:

 

Better or Worse 2009 vs. 2008?

· Accounts Receivable – 30,60,90,120+

· Turn Over to Collection – Ratio of Agency Collections to turnover

· Adjustments – Amount & Top 10 Adjustment Reasons

· Charges – by each provider + ancillary services

· Deposited Revenue – graph by month

· Expense Analysis – List Major Suppliers and Amount Spent

· Staff Turnover

· Profit / Loss

                                   

Planning 2010

Goal Setting for 2010

· Expense Reduction Targets– Meet with Major Suppliers – Better Pricing

· Renegotiate Office Lease?

· Set Accounts Receivable Reduction Targets – (be realistic)

· Target for Reducing Adjustments

· Challenge Collection Agency to Increase Percentage of Collections

· Reduce Turnover – How?

 

What’s New – By What Date?

· Add Procedures

· Expansion – Office / Satellite

· Equipment Needed – business / clinical

· Providers

· Staff – Additional / Reduction ?

· Money available for staff salary increases….bonus?

· Electronic Medical Records / Web Site

· Partner Retirement? Plan in place?

· Merger?

· How to react to anticipated changes in the marketplace – Hospital / Competition / Medicare / Third Party / New Procedures

                        Important - Agree to quarterly updates throughout 2010

To those practices that decide to STOP for the first time, you will experience a great feeling knowing that all of the decisions and the timelines agreed upon provide the practice with specific and measurable goals for 2010. The STOP meeting provides many reasons to believe that your practice can prosper and grow in spite of all the bureaucratic and market roadblocks seemingly established to hamper your success.

Congratulations to you for recognizing that proper planning based on data provides the success key for the practice in 2010. You have taken the first step by STOPPING!

Should you need any help, as always, I invite you to contact me, Vic Miller at 757-876.3208 or email onward@widomaker.com.

Best wishes for a fruitful and rewarding 2010!        Now GO!

Victor Miller, Vital Signs
757-876-3208