Every doctor who goes into business struggles with this at one point or another. How do you increase revenue for your medical practice?
The answer is quite simple. But executing it takes a lot of effort.
And with a growing number of practices forced to evolve amidst the pandemic, it’s more important than ever to find ways to make more money.
It doesn’t matter what your background in medicine is — if you follow these tips, you will notice a big change.
But before I reveal these different techniques, it’s important to understand the difference between revenue and profit.
Is Gross Profit the Same as Revenue?
No. Revenue and profit are different. But you need to have a strong understanding of both to be successful in business.
What is Revenue?
Revenue — sometimes called the top line — refers to your gross income. Or the total amount of money you earn from selling your product or service.
What is Profit?
Profit — known as your bottom line — is the money left over you could either keep for yourself or reinvest back into your medical practice.
Revenue vs Profit
So which should you focus on more?
As a business owner, you need to make a considerable profit in order to be successful. But your profit is determined by how much revenue you bring in.
If you don’t find ways to increase revenue for your medical practice, then you limit the total profit you could make.
At the end of this article, I’ll show you just how easy it is to focus on increasing revenue and profit at the same time.
7 Tips to Increase Revenue for Your Medical Practice
Imposter syndrome is normal if you own a medical practice.
You spent years studying medicine. But it’s unlikely you were able to earn an MBA at the same time.
So you feel like you’re unprepared to run a business.
Don’t worry. That’s why I compiled this list of seven proven techniques that will increase revenue for your medical practice.
- Review Your Current Business Operation
- Price What You’re Worth
- Establish a Standard Operating Procedure
- Update Your Payment Collection Strategy
- Grow Your Online Presence
- Mentor and Train Your Staff
- Offer Additional Value
1. Review Your Current Business Operation
The biggest mistake I see doctors make is failing to study their business before making a plan.
There’s no single plan that works for everyone.
But analyzing your strengths and weaknesses before you plan will give you the best chance of success.
Here’s what you’ll need to do:
- Identify how much revenue you currently earn
- Note how much profit you take (if any)
- Study how efficient your current workflow is
- Evaluate the different technology you use
- Establish a business plan
- Ask your staff or read patient reviews
2. Price What You’re Worth
“The more expensive the cost, the higher the perceived value.”
Studies have shown that people think expensive services and products are of higher quality.
But before you start charging ridiculously high rates — because I’m sure you’re worth it — you need to evaluate what that means for your unique clinic.
Research what similar practices are charging their clients.
Factor in your level of experience and your time.
Study your target demographic and what their financial situation is.
And don’t forget to consider your operating expenses when you price your service. Your staff and the different technology you use need to be factored in.
Once you’ve done this, make sure it falls in line with your business strategy and cash flow management.
3. Establish a Standard Operating Procedure
The more you do something, the better at it you become.
The same is true of your business operation.
You need to establish a standard operating procedure (S.O.P.). From the time an appointment is made, to payment collection — it should all be repeatable.
The last thing you want are confused employees. An S.O.P. will help increase the efficiency of your practice and give all staff a clear sense of direction.
It will also give you peace of mind knowing you’ll be successful if you stick to the plan.
4. Update Your Payment Collection Strategy
Technology is always evolving. And if you want to succeed today, you’re going to have to embrace that.
Especially when contactless payments are not only becoming the preferred option — they also meet physical distancing requirements.
A lot of doctors still accept checks and use out-of-date Point-of-Sales (POS) systems.
Updating your payment collection strategy makes it easier for patients to pay and easier for you to track cash flow.
5. Grow Your Online Presence
Today everything is digital.
It doesn’t matter if you have a brick-and-mortar practice. You still need a big online presence.
Your online presence is how you build your brand, ignite relationships with people and attract more patients.
According to a SalesForce study, about 60% of consumers choose to interact with a business online as opposed to offline. And almost 90% of people expect more companies to accelerate their online presence in response to the coronavirus pandemic.
Whether it’s through an informational website, social media or blogging — growing your online presence is essential to your success.
6. Mentor and Train Your Staff
Quite often your staff are the first point of contact for patients. They are part of the sales process.
If they aren’t welcoming, people are less likely to come back — or recommend you to their friends.
This is still true if you have a virtual practice or tele-health clinic.
Creating a good patient experience could make or break your business. You need to be mindful of how to improve patient flow.
You should have three goals when it comes to your staff:
- Promoting a healthy culture
- Encouraging efficiency
- Ensuring patient satisfaction
This combination is essential to increasing revenue at your medical practice.
A healthy culture will boost morale and increase employee retention. You do not want a revolving door of nurses and assistants.
The longer team members are at your clinic, the better their understanding of your S.O.P.s and more efficient they become.
7. Offer Additional Value
The secret to standing out from other medical practices is offering additional value for your patients.
It could be posting helpful blogs, being active on social media or creating care packages.
Care packages might surprise you. But it’s an old-school technique that’s still very effective. Not only are you gifting things like branded water bottles, fridge magnets or pens — you’re raising awareness of your brand.
This is important because not only are patients more likely to come back, they’re more likely to refer you.
What to do Next
These seven tips will show you how to increase revenue for your medical practice.
Now it’s time to put them into action.
But there’s more to business success than gross revenue.