Running an Allergy Practice is no easy task! Running a highly profitable one is even harder.
As a CPA who focuses on Allergy Practices, I wanted to learn what the most successful practices did to ensure a health practice and how I could help my clients achieve greater PROFITS……
My aim was not to uncover the basics, but to dig deeper into the financial operating processes and mindsets of highly profitable firms.
Below is what I learned.
When it comes to a successful business, there is no doubt that profitability is a critical indicator. In fact, it is one of the most vital elements that must be present in order to ensure that a business is self-sustaining and will continue to grow its customer base. Not to mention that if you ever want to sell your company for a pretty penny you must be PROFITABLE.
When it comes to actually obtaining the best profit possible rather than simply acknowledging its importance, of course, things become a bit more complicated. This is perhaps especially true in today’s business landscape. Consumers today have more options than ever before when it comes to the services and businesses they frequent. That is why it is so important to ensure that you are doing all that you can to provide the best and most smoothly run service to your patients.
To determine the best way to ensure profitability for allergy practices this year, I reached out to industry experts for some advice and insight. I was fortunate to interview three specialists, and they gave me some great tips about the most important factors that influence success. Let’s take a look at what they had to say, and examine three tips to ensure that your allergy practice is profitable in 2017.
1.) Embrace the Present (and the Future)
Adjusting to new technology can be difficult for any business. In industries where diagnosis and treatment tends to happen in person, however, the adjustment to new care methods can be particularly challenging. With that said, there is no avoiding the changing healthcare landscape. Harry Nelson, founder and managing partner of Nelson Hardiman, believes that looking to the future of healthcare is one of the best ways to ensure profitability for an allergy practice. He suggests paying attention to things like tele-health services that provide convenient advice and diagnosis to patients without requiring them to come in for an in-person visit. Concierge direct care is another growing service area to keep an eye on.
Summary: Stay current and leverage technology
2) In-Office Sales Are Key
Lee Sheinkopf, MD, a board certified allergist/clinical immunologist of the Allergy Asthma Care Center, has valuable experience in improving the profitability of practices. She believes that one of the most important things to emphasize when it comes to increasing profitability is to sell more point-of-sale items in your office itself. This refers to things like pillow encasements, shampoos, and other items that patients might find helpful in treating their allergy issues. This is especially important if you are going to recommend that patients try solutions like using a pillowcase that eliminates dust mites – why divert your customer to other retailers when you could sell the relevant items yourself and increase your profit in the process?
Summary: Make it easy for your customers to purchase products directly from you rather than the big box stores. Convenience trumps price.
3) Specialization Trumps Generalization
There is a tendency in today’s workplace to cross train employees in many different roles. You might have one employee who was hired to code medical records, for example, but ends up spending a lot of time answering the phone, scheduling appointments, and even checking in patients. Dr. Trenkle believes that this is a mistake. In order to ensure knowledgeable and smooth service, it is important to hire a team of people who are specialists in what they do – and to have them focus on that particular role.
Summary: Hire talent for the primary role they will be performing.
4) Implement a “pay yourself first methodology”
“You as the owner of the firm are more dedicated, more invested and more committed to the success of the company than any employee ever will be. Yet many owners pay themselves last or in some cases not at all.” says Mike Michalowicz Author of Profit First and CEO or Profit First Professionals.
Are you ready to increase your profitability in 2017? Follow the above advice, and you’ll be well on your way!
Explore these ideas further at the following sites:
Wendy Barlin is more than an accountant. She is a Personal Business Manager and financial confidante. Her specialty is taking all the tedious financial chores off the shoulders of busy professionals and business owners so that they can focus on the areas where they excel. Wendy is a member of the California Society of CPAs and the American Institute of Certified Public Accountants. She served on various committees for the Jewish Federation of Los Angeles and is a mentor for the Jewish Vocational Services Mentor Program. You can learn more at wbarlincpa.com/