Implementing New Profit Centers
By Michael Perusich, DC
With today’s technology advancements, chiropractors have many great tools to add to their practice. Of particular interest is equipment that brings improved outcomes to patient care and added profits to your bottom line. From decompression tables to ShockWave machines, there is a vast array from which to choose.
While these devices can be a great addition to your office and help enhance patient care, your implementation strategies are the key to making them successful.
It is common for doctors to purchase a new therapeutic device without a good implementation strategy to integrate it into patient care plans. The result is little to no return on investment and frustration of overspending.
Practitioners must implement intentionally developed and executed strategies when adding any new potential revenue center. Without a plan, the likelihood of profitability diminishes. In addition, part of the plan needs to consider how you will price the service you have added.
Your fee strategy should consider several factors, including patient cost tolerance, the cost of equipment, the potential life of the device, and whether you are leasing or have a loan against the equipment.
Patient cost tolerance is a key methodology when pricing any of your services. While you may have added a great enhancement that many of your patients need, your patients will not embrace this new service if they cannot afford it.
This factor then plays into the cost of equipment. The higher the price of acquisition, the higher the service fee you will need to charge to have any hope of creating ROI. Plus, if you incur debt to purchase the device, then your carry costs (i.e., principal and interest) will drive up the fee you need to charge for the service.
Adding new services can be a great way to improve patient care options, bolster outcomes, and increase the profitability of your clinic. However, physicians must put intentional thought into creating the tactics to create the ROI needed to pay for the equipment and develop profit for their bottom line. Put your services to work for you and your patients.
Dr. Michael Perusich is a solutions-focused advisor with more than 25 years of success across the healthcare and consulting industries. His broad areas of expertise include coaching, training, content development, and motivational speaking. Dr. Perusich is the CEO of Kats Consultants, LLC., where he and his team offer a unique platform of business knowledge and tools for today's Chiropractic entrepreneur. Visit Katsconsultants.com for more information.
