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5 Steps to building a profitable medical practice

  • Highlights

  • Set financial targets based on past performance

  • Use technology to improve efficiency & lower overheads

  • Hire the right support staff to build customer loyalty

  • Look at the larger picture when thinking of finances

If you’re looking to take your medical business to greater heights this year, focussing on its profitability is a crucial element. However, simply being the best clinic in the neighbourhood isn’t enough. As an entrepreneur, you must actively take steps to make your medical practice profitable. To be certain that this is a sure outcome, implement the followingmeasures.

1. Consider your patients as customers and revisit your business plan

You don’t need a business plan only when you start your medical practice. In fact, you should come up with one every year. This will help you measure past performance and set targets for the coming year. By examining the number of patients you catered to last year as well as the profit,you can decide how many patients you want to treat this year and accordingly set a revenue goal too. You may also decide to convert your current practice into a polyclinic by partnering with doctors of other specialities to cater to more patients in one place and thus increasing your revenue.

2. Shift to digital processes to make clinic management seamless

As far as possible, eliminate the use of paper in your medical practice. Whether it is patient records or billing, you can rely on software to get the job done. Shifting to technological systems such as clinic management software, patient engagement software, e-billing systems and electronic health records will benefit you greatly. This one-time investment will take your operations digital, thereby eliminating several costs such as that of printers, paper, stationery, etc. Besides, you will also be able to free up human resources by digitising systems. On the whole, shifting to software and computer programmes will streamline processes and boost your practice’s efficiency, allowing you to treat more patients in the same time frame and remove all inefficiencies related to physical paper management.
Although you eliminate variable costs in the long-run by adopting digital processes, there’s a significant initial investment that is involved in digitising your firm’s operations. Medical professionals like you can easily fund such costs with an easy loan for doctors that are specially designed for them, keeping in mind their professional experience and degree.

3. Hirethe right number of clinic staff

Understaffing and overstaffing are perils that can throw your bottom line off track. The key is to analyse past patterns and identify the amount of staff you need for day and night operations, as well as during periods when the number of patients increase. Draw up a staffing chart and ensure that you have enough receptionists, nurses, peons and assistants. This will ensure that your patients are receiving optimum care and that your budget for human resources is being used appropriately.
This is important as personal attention and interaction are a big part of how comfortable patients feel at a medical facility. When medical professionals attend to their every need they are likely to return to your clinic over another doctor’s. Also, when your employees aren’t pressed for time, they are more likely to be thorough, which will reduce the risk of human error and protect you from potential lawsuits.

How doctors can take their practice to the next level

Go digital with Business Loan for Doctors

Bajaj Finserv offers business loans to doctors up to Rs.35 lakh with added benefits like 24-hour disbursal, doorstep document pickup and Flexi Term Loan facility. With these special loans, you can integrate technology in your practice operations and streamline operations and boost profitability.

4. Add a practice manager to your hierarchy

To keep your practice profitable, it is important to understand the tasks that you must take on as proprietor and ones that you can outsource to skilled personnel. And so, hiring a practice manager is a smart move. He/she can help troubleshoot concerns that arise on a day-to-day basis. Since you’re also going to be practising medicine, it is best to delegate this responsibility to someone who has experience with managing a workforce. This will ensure that you can give the important tasks on your list all the attention, while someone else oversees jobs like maintaining inventory, ensuring that staff arrives for their shift on time, etc.

5. Look beyond revenue to protect and scale your practice

As a service provider, the income you generate from providing medical care will always be extremely important. But, to ensure profitability in the long run it is crucial that you look at the larger picture. This involves taking the time to review your practice’s finances on a quarterly basis. Not only will this indicate if your performance is in line with the goals that you have set, it will highlight a possible shortfall of funds, which you can then finance with the help of a loan for doctors. Besides this, also ensure that you invest in professional indemnity insurance for doctors. This will protect your firm’s finances in case you are wrongly accused of negligence or incorrect treatment by a patient, and you have to fight legal charges.
With these tips in mind, you’re sure to be able to make your clinic efficient, streamlined and most importantly, profitable.

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