First my disclaimer, I’m not a chiropractor but I have built three national service companies serving over 25,000 medical practices and 500 hospitals. Two of my companies were ranked on the Inc. 500 list of America’s Fastest Growing Private Companies. I have also had the privilege of coaching a diverse group of entrepreneurs ranging from motivational and business leader Tony Robbins, Fortune 500 trainer Chet Holmes, leading Internet marketers, and yes, dozens and dozens of successful practices and clinics. I was also selected above many other leading healthcare trainers to moderate the first-ever PointOne Conclave Mastermind with 12 of the top practices in the nation (sponsored by Parker College).
So how do you systematically build a multi-million dollar practice that is highly sellable? In this 4 part series I will share the 4 Success Keys required.
What I have discovered in coaching leading practices is that there are a handful of “success keys” that can help them dramatically increase their revenue, profits and practice wealth (one of my clients sold his practice for $16.6M and I am now coaching another integrated practice that is already valued way north of $100M).
Success Key #1 – Systemize and Optimize
You may expect me to start with “Lead Generation”… and yes that is one of the 4 Keys but it is not the first one or the most important, despite the fact that it is listed as the #1 need listed by most practices (just not by the top practices).
I find it ironic that the top practices are looking for “Business Guidance” these days, instead of practice management training. There is a logical reason for this, they are looking to scale their practices while simultaneously freeing up time so they can work more “on” their practice instead of “in it”, as well as enjoy more time off.
The first step in Systemizing and Optimizing your practice is to have reliable, accurate reports on the key metrics or KPIs (Key Performance Indicators). Without these in place you can NEVER build a long-term successful practice that can operate without your constant involvement.
As long time client, Dr. Todd Cevene (Collects $2.8M in one office) said, “I didn’t want to take the time and effort to build out the reporting systems but Scott pounded it into my brain… and now I have a pulse on virtually everything important in the practice every week.”
These KPIs range from:
-patient conversions from first visit to care plans
-average visits and where patients are dropping off
-average billed services
-collection rates…and on and on.
Plus, marketing metrics such as:
-cost per lead
-cost per patient
-ROI and so on
Knowing this information enables you to maximize your marketing spend and shift dollars to the highest performing marketing methods…and even when and where to spend MORE SMART MONEY.
The Impact of A Systematic-Optimized Practice
Let’s take a look at a simple model to evaluate the impact of making a series of small improvements of just 3%.
Seeing the potential of how you can add a half a million in practice value to a million dollar practice is really cool (or a quarter million to a $500k practice). However, learning HOW to do it…that is the right strategies and right tactics is way more exciting. That will be the focus of the upcoming articles in this series.
Once armed with the RIGHT metrics, instead of being overwhelmed with a bunch of useless ones, you can then move onto Success Key #2, Lead Generation.