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Top Five Tips for Revenue Growth
By Marie Olesen
As seen in InPractice Newsletter, Spring 2002.
1. Follow Up on "Info Only" calls. Most practices still do not follow up on Info Only calls. Four years ago this was my number one suggestion in an article in the Plastic Surgery Resource Guide. In 2002, it is still great advice that gives a real competitive advantage. Recently we called 25 practices in Florida and requested breast augmentation information. The vast majority either did not send information as promised and/or failed to follow-up later. In fact, only 2 practices asked for the patients phone number. Only 1 patient coordinator of 25 called to verify that the patient had received the materials! When this patient is ready to make an appointment, who do you think she will remember? Patients who start the surgery process by asking for information only can be just as serious about having surgery. Practices who ignore these patients are losing potential revenue and making it much easier for their competitors.
2. Focus on "No Shows"; the problem can be managed. I field lots of questions about no shows. No shows equal lost revenue. If you really knew how much, it would drive you crazy. If your practice has a $5000 average case and schedules surgery for 50% of patients seen in consultation, then each "no show" costs you $2500! If your stats or costs are different, figure it yourself. I've never seen a no show cost less than $1000. That merits your attention. Four factors influence whether a patient who makes an appointment, decides to keep it:
– First, your practice must provide new patients with a quality phone call. You staff must have time and training to turn callers into consults. In many practices, the newest and most uninformed staff members handle valuable new patient calls. It is a costly mistake. This is an important step and the better the call, the fewer No Shows your practice will have.
– Secondly, appointments must be readily available. Most patients won't wait several weeks for an appointment. The longer you ask them to wait, the higher the no show rate. We measure this in our software and know it to be true. If you cannot accommodate patients within 7-10 days, take a serious look at your schedule and make the changes necessary. If you are advertising and then have a long wait for consultations, you are wasting your marketing dollars.
– Third, confirm appointments in writing with attractive and educational patient brochures and materials that tell a great story about your practice. Many practices still miss this vital step in the patient commitment process. Divide your marketing budget between projects that make the phone ring and investments that support the advertising expenditures. Patients who receive great materials arrive at your practice with more knowledge about you and are more ready to schedule surgery.
– Fourth, confirm calls at least 48 hours in advance. The best results come when the person who talked to the patient initially is the one who calls to confirm. Confirming appointments offers another opportunity to make a positive impression. The staff member who made the appointment should make the call. This approach alone could add several surgical cases per month to your schedule.
3. Understand the Purpose of the Consult. What is the goal of the consult? This may sound like a simplistic question, but it is not. The cosmetic consult is an important step in the patient's decision-making process. The reconstructive consult is an important step in the surgeon's preparation for surgery. If you don't recognize this essential difference, your practice will not schedule as much cosmetic surgery. The cosmetic consult is an interview of the practice by a prospective patient. The patient has not yet chosen the practice or even decided to have surgery. So stop preparing for surgery prior to the patient's decision. Do first things first, build trust and confidence and establish a relationship for future contacts. Be sure that you answer the patient's questions and meet her needs. Put your best foot forward. Be on time. Make sure your office is clean and that your staff is friendly. Follow the patient's lead rather than making her adjust to you. If you adhere to these simple principles, you should schedule more surgery.
4. Avoid Costly Surgery Cancellations. Your practice either has a problem with surgery cancellations or it doesn't. Surgery cancellation problems are much more common in very competitive markets. If your surgery cancellation rate is over 5%, then you should act immediately. Surgery cancellations can be avoided, but the process must be managed carefully. If your practice faces this issue, then proactive communication and good patient care can help a lot. Both the coordinator and the nurse should be in regular contact with pre-op patients. The more contact, the less likely surgery will be cancelled. It can be a costly problem. I've seen larger practices with cancellation rates over $250,000 per year! The cost of cancellations to small practices can exceed $50,000 per year. Keep on top of this problem and the added revenue will help you meet your goals.
5. Post Op Strategy: Telephone Patients Proactively. Most practices manage post op communications with a "No news is good news" philosophy. Just because the patient is not calling does not mean everything is OK. They may need our reassurance or advice desperately, but be afraid to call. My advice is to call them first. They will love the attention and reward your care with loyalty. There is a lot at stake post operatively. Will the patient be happy enough to remain in our practice and come back for future services? Will the patient be so pleased by her result and our care that she refers friends and family? Or, will the patient be so unhappy that she decides to sue us? That's a great deal to leave to chance. And managing this portion of the patient experience can yield big dividends.
To learn more about our consulting services:
Articles by our consultants:
- Using Patient Financing to Grow Your Practice
- "Haste Makes Waste," but "Time is Money"
- "Spring Training" for Practice Growth
- The Five Deadly Sins of Medical Marketing
- Top Five Tips for Revenue Growth
For more information about our consulting services call us at 800-994-6367 or contact us online.
