Do the analysis, and you’ll likely find that you’re spending too much time serving low-value patients who don’t add much to your bottom line. Think that’s inevitable? It’s not.
– I was talking to a doctor last week that wanted to eliminate insurance from his practice and get more fee for service.
– And what he was telling me is he didn’t know how to do it, or he was fearful that when he dropped certain insurances that his practice, his revenue was going to go down as well.
– So we started working through this and it really comes down to the Pareto principle, the 80/20 rule.
– We all spend 20% of our time serving the highest volume, those that produce 80% of our income.
-And conversely, what we need to do is, we need to spend 80% of our time serving the top 20% of our clients, and figuring out what that is.
– And in this doctor’s case, when we sat down and really looked at the different PPOs and reimbursement rates and what it was doing to his practice, we can eliminate a whole swatch of insurances and the patients in his practice, and actually produce more money, even taking into account a certain amount of attrition of those patients leaving his practice.
– So he’s in effect, he’s gonna work less and earn more.
– But if you fill the open slots with better patients, now you’re working the same and earning a whole lot more.