The Key to a profitable financial plan is having a solid offense (your production and marketing towards the right patients) and a strong defense (reasonably reducing expenses and overhead), but finding the perfect balance between the two is what will ultimately bring you financial success in your practice!
If you solely focus on producing, although you will most assuredly provide quality services to your patients, you will do so at the expense of your profit margin. Some practices will place too much of their focus on reducing and cost-cutting, which in turn directly destroys the culture and core values of their office!
Even though no two practices are exactly alike, we have found, in our practice, (through much determination, as well as trial and error) that a 10:1 focus on producing vs reducing has been the sweet spot for our continued financial success! This has allowed us to efficiently cut costs where we can WITHOUT sacrificing the quality of our production!
I saw this stat during an NBA game recently and I thought that it related nicely to this topic! This is exactly the reason why the Utah Jazz are #1 in the league this year. They have consistently won because they have been the only team in the NBA to rank in the top 5 in both their offense AND their defense!
As you work on both your production and reductions, remember that it will take time, and a little trial and error to find a good balance between them (but don’t expect perfection – you don’t need it to strike gold!), but ultimately you can, and will, reach financial success through that balance!
From everyone here at Pinecrest Practice Growth, we sincerely hope that you find the perfect balance between your offense and your defense to become more financially successful, and that your practice continues to grow because of it! Have a great week everyone!