The Best ROI You Can Make For Your Practice

 The Best Return-On-Investment You Can Make For Your Practice

Let’s say you’re at a cocktail party. Someone walks up to you and says they can tell you the single most important investment you can make in your practice next year. They add to their already astounding statement that this investment will generate a higher return on investment than any other alternative.

Your brain begins to churn through the potential punch lines to this provocative set of statements: Malpractice insurance? EHR? Lobbying efforts to fend off government regulatory pressure? What could it be? Just then, the mysterious stranger delivers the punch line. The single most important investment with the best return-on-investment you can make for your practice is an investment in your staff.

A quick history primer
In the 1990s, a group of researchers out of Harvard developed a different approach to a business model. The researchers included the likes of Earl Sasser, Leonard Schlesinger, James Heskett, and several others. They proved that there was a direct link between employee satisfaction that generated higher quality service delivery, yielding customer loyalty and ultimately creating improved financials. In fact their research went so far as to say that a mere 5 percent improvement in customer loyalty could result in profit increases ranging from 25 percent to 85 percent. They labeled this business model the service-profit chain and it has become the foundation under which much research today surrounding customer loyalty, patient satisfaction, and word-of-mouth referral activity finds its genesis.

The links in the chain start with employees
So, let’s take this intriguing concept one step further and see how this works. It all starts by creating engaged employees. Employees who are passionate about what they do, are well-equipped and well-trained, and have the tools and information needed to perform at a high level every day. By creating these kinds of employee relationships, three important things happen.

First, you see a reduction in the churn rates of your staff. Let’s face it, all that time searching for a new staff member, screening and interviewing them, training them on your practice …all that time is costing your practice money. Much better to find good staff, keep them engaged and keep them onboard. Second, more engaged employees create an environment where practice operations run with excellence. Third, employees who are positive, authentic, and pleasant with your patients create stronger relationships with your patients (thus generating patient loyalty). We all have had that one nurse on staff that patients just adore — that nurse is an economic engine for your practice!

Operational excellence generates loyal patients
Next, when operations are running smoothly your practice begins to generate productivity efficiencies which impact your bottom line. Outstanding operations create superior experiences and interactions for your patients, who then become loyal patients — they stay with your practice, they bring their family, refer others, and they comply with your policies at a higher rate. Having a loyal patient base creates its own virtuous cycle wherein your staff gets to know your patients better and are able to customize and cater to their specific needs more and in turn your patients become “better patients” by learning your policies, procedures and processes.

Loyal patients generate premier financials
Those loyal patients behave in positive ways towards your practice. They refer others. They stay with you longer — even if you move locations or make some change in your practice. They’re less likely to create malpractice issues. They use your services more frequently and they use more of your services to meet their health needs. These are the patients every practice wants because all those behaviors generate positive financial results for you and your practice.

So there you have it. Through a series of cause-and-effect linkages, we’ve seen that an investment in your practice’s employees will yield an improvement in your practice's financial performance.

Maybe our mysterious cocktail party guest wasn’t so wrong after all. Start by improving communication flow in your practice. Identify ways to increase staff training. Ask staff openly if they have the tools and information they need to be productive and effective with patients. Get a dialog started this week in your practice with your staff. How can you create more engaged employees?

Human Resource Services HBM Provides

SERVICES WE PROVIDE

• Personnel Manual - Create and Update
  
• Safety Manual - Create and Update
  
• Personnel Task / Job Training
  
• Initial and Annual Training for: Incentives, Operations, Computer, Personnel, Compliancy, HIPAA, OSHA, Financial and Safety
  
• Payroll Account Setup - Service Interface and Report Hours
  
• Acquisition - Replacement - Hiring
  
• Hours, Vacation, Sick & Holiday Calculation
  
• FLSA Personnel Documentation & Standards Compliancy
  
• Benefit Package Development, Implementation, and Coordination as instructed for: Medical (including Psychological Recovery), Dental, and Life Insurance, Disability, Key Personnel, 401K or Defined Benefit Pension Plan, Vision, etc.
  
• Initial and Annual Compliancy Assessment
  
• Personnel Forms
  
• Setup of Human Resource Compliancy Task Calendar and Tickler File
  
• Customer Service Coaching and Training
  
• Ergonomic Assessment and Implementation for OSHA Standards Compliancy
  
• BiAnnual Reporting

The Five "S" Methodology

The philosophy of continuous improvement is more than a trend in today's business environment, and the solution is the visual workplace - for improving quality, organization, efficiency, housekeeping and safety.

The 5S methodology, as described in Hiroyuki Hirano’s 5 Pillars of the Visual Workplace, is the foundation for making companywide improvements in both the production facility and the front office, so that the Just-In-Time production strategy (inventory management) can be implemented.

The 5S’s are based on the Japanese words seiri, seiton, seiso, seiketsu and shitsuke, and, when translated, mean organization (sorting), orderliness (setting in order), cleanliness (shining and sweeping), standardizing (standardized cleanup) and discipline (sustaining the process). These 5S’s are the basic formula for achieving “product diversification with zero changeovers, higher quality with zero defects, lower costs with zero waste, reliable deliveries with zero breakdowns and improved safety with zero injuries.”

A sixth “S”, “Safety”, is sometimes added depending on the workplace, and some argue that explicitly including this sixth “S” ensures that workplace safety is given primary consideration. But it is reasonable to assume that a properly planned and executed 5S program will inherently improve workplace safety.

Sorting

The main component of the first “S” or sorting phase is ridding a bloated production facility of any unwanted, unneeded or unused tools or materials. This happens by implementing the “red tag” strategy – applying a red tag to anything considered unnecessary in a production cycle, placing in a holding area to see if it is needed at any point, and then ultimately discarding anything not needed. “When in doubt, throw it out.”

Setting in Order

A lot like a home garage peg-board, or a surgeon’s tray of instruments, the second “S” gives each tool a permanent place to reside so that whether the employee is new or temporary, or doesn't speak English as a first language or just happens to need something right away, they know exactly where to find it and put it when finished. Driving even deeper into this strategy, tools are combined when possible to perform various functions, and placement in bins, in drawers, or on shelves accounts for chronological use and proximity to the user.

Shining

When the work area is clean and maintained, maintenance and repairs can happen instantaneously, because they come to a worker’s attention immediately. In a dirty environment, machines that could be easily fixed may break down because an oil drip was not noticed until it was too late.

Standardized Cleanup

Even once everything is in its place and the work environment is clean, don’t stop there. Determine daily (even shift) targets, assignments, methods, tools – then keep going. There is no limit to how often, how long, what procedure or what tools to use, until it is determined that once your daily cleaning duties are accomplished, your time can be better spent elsewhere.

Sustain the Discipline

Simply put, "Make a habit of properly maintaining the correct procedures." Without discipline, excess materials are purchased because they're not in the proper place, workers waste time searching for misplaced tools, the facility will get dirty again causing machines to break down, and accidents will become more prevalent.

5S for the Front Office

Record Saving

As any production facility is subject to the 5S methodology, so too are the front offices. Bookkeeping or record keeping lack a "self-cleansing" mechanism and the accumulation of paper or the "paper trail" (usually in triplicate) can be burdensome. The best answer for defeating this problem is starting before it ever exists - including finding ways to prevent organizational documents from accumulating in the first place.

Knowing what to keep and for how long, and dedicating time each month, quarter or year for cleansing the clerical space of unnecessary, unwanted or unneeded clutter is a necessary task to avoid the front offices from also becoming "fat." Records of reports and data that never get used are a major culprit. Not only is old information typically an unwanted accumulation, it tends to lose its value the older it gets. Front office cleanup campaigns should be implemented at least twice a year while daily organizational routines consistently work to sort what is necessary to keep and what is not.

Some records are necessary for certain periods of time and offsite record storage or annex buildings are sometimes used for this warehousing. But these buildings are also subject to the same issues as the main facility. When transfer of documents and records is necessary, store new documents separately from documents that are reaching their shelf life and remember to clearly mark all storage containers not only with what they hold but for how long they should be kept.

Desktop Templates

In eliminating time wasting effort by employees searching for tools they need on a regular basis in the production facility, the shadow board philosophy also works in the front offices in the form of a desktop template. Regular use of stationary and supplies should be noted and only those tools regularly used should be kept on desktops. This eliminates clutter and accumulated dirt and also serves another important purpose - savings on the cost of front office supplies in general. No stationary or supplies including pens, notepads, scissors, tape dispensers or any other should ever be stored in a drawer where they are inevitably forgotten. This is cause for unwanted accumulation of often expensive front office tools and unnecessary re-purchasing of these items, ultimately affecting the company's bottom line.

With proper planning and execution, any production facility can implement the 5S's for a visual workplace - not only in the plant, but the front offices and any secondary warehousing facilities as well. This methodology requires buy-in from the CEO all the way to the newest employee. Over time, it will benefit the organization as a whole, protecting workers safety, keeping things organized and running properly, and increasing the bottom line of the company.

Marketing Your Practice

COMMUNICATING YOUR VALUE should be your marketing mission!

Most practices dive right into direct marketing and attempts to obtain natural search engine optimization (SEO) for the "cost-effective" website their cousin built, without even determining what they want from their business. You might think you know but first things first! Patience is the key. Be aware that there are medical rules and regulations that you must adhere to so as not to lose your license.
There are infinite ways of marketing and advertizing your medical practice. To market it effectively, you need to think strategically about what you want to accomplish.

Do you simply want more new patients?

Do you want to change the mix of business to attract more of the kinds of cases you find more fulfilling and financially rewarding?

Are you looking to develop a strategy for adding more professional referral resources?

Do you want to obtain more referrals from your current patients?

Do you already market your practice but wish to improve the performance and increase the return on investment from your current marketing efforts?

Are you trying to achieve more consistency in your month to month revenue?

Are you planning to relocate?

Are you adding a new office?

Are you adding or replacing a provider in your practice?

Are you fundamentally trying to work smarter because you can't possibly work any harder?

Are you trying to protect what you have already worked so hard to achieve?

Are you trying to take your practice to the next level?

Marketing is almost entirely about 'Human Motivation', just as 'Sales' is. It's not about numbers and benchmarking; those things are only used as a navigation tool to help you determine which way to steer your marketing ship.

Competition these days is FIERCE; far greater than ever before. It's like turf wars; everyone wants the most lucrative cases. Competition is also fueled because of the fact that it's becoming a smaller piece of the pie. Costs increase, reimbursements continue to decline. Unfortunately, the more experienced the practitioner, the more conservative they are. The more experienced practitioner is not used to tooting their own horn. It makes them feel uncomfortable. Inexperienced doctors, however, have a tendency to accept new things and ideas. So, if you are a more experienced doctor, remember, while you are in competition with the inexperienced doctors, THEY have no hesitation do whatever it takes to get out there and market their talents to get that experience. They are cutting into YOUR piece of pie and have NO PROBLEM doing it! If you want to expand your practice income you MUST embrace new ideas and have no hesitation in implementing them.

Additional advice to consider - Do not make the mistake of using your sales and operational staff to market. They did not go to school and study marketing or advertising. They should be on board, however, and use the designated marketing strategies to accomplish the goals that are set. But they are not 'copywriters' or 'graphic designers' and even if they were, working strictly on marketing and nothing else, it would take years and years to successfully create and implement in the timeframe as would be needed to be successful at it. You need them to concentrate on sales and operations - keep it that way."

HUMAN MOTIVATION - DO ANY OF THESE SOUND FAMILIAR?

1. You're working really hard but need to market so you won't be stressed; you want to be successful enough to make time for family and friends, and to take some time you need for yourself as well.
2. You're working very hard and want the tangible financial rewards that go with it.
3. You want to build it - see how big you can make it grow - increase the gross, and increase your reputation in your community, increase your quality of care.
4. You have a great practice- but want you want a bigger vision.
5. You are grateful and want give back to your community, nation or people.

We can help www.HealthcareBusinessManagement.com