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is a question-and-answer forum featuring
leading practice management experts who may or may not be
employed by Physicians Practice. On average, Physicians Practice
receives 250 questions per month from physicians, office managers,
office administrators and others. Have a question about the
operation of your practice? Visit www.PhysiciansPractice.com.
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Q
How can I tell if adding another physician
will mean more or less profit?
A To see if the benefits of
hiring another physician will outweigh the costs, and when,
create the spreadsheets described below.
On the top, horizontal line, list each month for a 24- to
36-month period. On the left, vertical axis, list additional
costs:
- Salary, payroll taxes
and benefits for the physician and new support staff
- Office space, including
new furniture and equipment, higher lease or rent costs,
property insurance, utilities
- Patient service costs
such as medical supplies and other variable costs
- Professional dues
- Increased billing
costs including postage and filing fees
- Marketing expenses
Estimate these costs and
when they will come in over the coming months.
On a separate spreadsheet, chart how many patients the physician
can be expected to see each day (the number will grow over
time) and the estimated revenue from those patient visits.
The practice’s average fee per patient visit is a good
basis for this chart.
Comparing the two spreadsheets, you’ll be able to compare
revenue and costs over time and see when and if a new physician
will turn a profit.
Q
How should I develop job descriptions?
A You can pick generic job descriptions
from a resource book or hire a recruiter to help you develop
descriptions for present and future employees. However, the
best source for this information may be right under your nose:
your staff. Ask these “in-house experts” to make
detailed lists of the tasks they do. This may not be a total
solution, but it will give you a good start.
Next, review the lists objectively. For instance, are you
paying a nurse to pull files? If so, make that task part of
the job description for a lower-paid employee. The idea is
to match training and tasks as closely as possible. And review
all procedures, even the ones that have “always been
done that way.” With your revised task list in hand,
you can set clear standards for each job, so you’ll
have a basis for performance review in the coming months.
Finally, review the finished product with each employee. Make
sure you haven’t overlooked something. Are there ways
to make the person’s job easier? Is there opportunity
for advancement? Most important, make sure each person understands
what’s expected of him and how he will be reviewed. |
