By Laurie Morgan, Capko & Morgan
Like you, our consultancy works in the trenches of the medical practice market – and we have a different vantage point than the media covering our industry. The regulatory agenda seems to favor consolidation, and the news coverage seems to focus on hospital acquisitions and the dominance of big systems like Kaiser, Mayo and the Cleveland Clinic. But we see an underreported private practice reawakening.
Big organizations just aren’t for everyone. If you’re an independent rep, you know from your own experience that many of us who work for ourselves happily trade off stability and even income for more flexibility and freedom. These same lifestyle qualities appeal to many doctors, too.
That’s what we’re hearing from the many physicians who’ve called us to get our input on setting up solo or small practices. And we’re not the only ones hearing these physician voices. Key technology vendors that make billing, electronic medical records management, and reporting for government programs easy and affordable have hit their stride. Billing services are undergoing an expansion, too – expanding and offering more value to their practice clients, partly by piggybacking on technology advances. We’ve even noticed banks quietly launching or expanding financing options for private practices. It’s clearly not just us noticing that there is opportunity for physicians who want to remain or become independent.
Have you heard from a physician at a larger group who’s thinking of going solo? Or one who’s having trouble adapting to the bureaucracy of the hospital that acquired his group, and is contemplating forming a new private practice down the road? If so, how should you respond?
First, know that it is a sign of significant trust when a doctor confides in you. Honor that trust – and the trust of the organization they’re still with. Pledge to help however you can – after they give notice to their current practice. (After all, the larger organization that currently employs them is your client, too!) Remember that cold feet can take hold. Many of the doctors we talk with who are considering going private wind up delaying or waiting for a better time – for example, because of family or financial concerns. Remaining neutral helps you support your physician client to make the choice that’s right for them at the right time.
Once a physician is committed to making a move, you can play an invaluable role by connecting your client to resources that can make their new venture a success. Many aspects of setting up a practice are highly time-sensitive. If they’re not done early, they can cost a young practice thousands of dollars. These include credentialing (which can take months), editing and establishing profiles in payer and physician rating directories (which can be much harder if done after moving), creating hiring plans (especially for key hires that will help get the practice up and running), and reviewing and choosing technology.
Consultants can help with many of these tasks – and you can help, too, by keeping track of resources your other clients have relied on, be they individual advisors, reliable technology and service vendors, or even informative books, websites and other media. By helping a physician get a new practice off to a strong start, you’ll solidify your business relationship – and you might even be helping to launch what will one day be a key client for your own business.
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