As of May 2022 inflation is at a 40-year all-time high. The Federal Reserve is predicted to raise interest rates by .25%-.50%. There is a lot of fear, uncertainty, and doubt across the nation due to the war overseas, supply chain limitations, the pandemic, and populism.
Harvard Business Review published an article on cutting the correct expenses, getting a good picture of your money, and determining where it is best spent.
- Get Spending Visibility
- Differentiate between strategic and nonstrategic spending
- Unpack the drivers of spending
- Reduce consumption
- Eliminate work
Other key strategies practice’s implemented that survived and thrived in the 2008-2009 recession and during the first year of the COVID pandemic:
1. Maintain and Increase Cash Flow
One of the ways offices that I talked to did this was to partner with SMB. This gave doctors the consistent cash flow they needed. It also provided them with insight into what was being paid and what wasn’t, where to spend their time, and where time is being wasted.
Another way was by hiring new doctors. This way, they could fill their day up with the procedures they liked to do while the new doctor would funnel the patients for those procedures. This provides practices with a wide range of patients and diversity in case something were to change for a period.
2. Refine Marketing efforts
I noticed practices with a defined business strategy focus their attention on specific marketing tactics such as Google ads, magazines, social media, mailers, and letters to primary care doctors for referrals.
Some offices do this internally, while others prefer to outsource to experts. If you would like to speak to someone knowledgeable about private practice growth and extensive experience in the medical field, SMB partners with Bixler Consulting.
To summarize Havard Business Review, “by playing both offense and defense in a disruptive environment, you position yourselves to outpace less-proactive organizations after volatility ends.”