Google
About Philippa Kennealy

Philippa Kennealy MD MPH CPCC PCC is The Entrepreneurial MD Business Coach who wants to help you build your business!
meet Philippa>>>

 

 

Search this site
Subscribe to our newsletter
captcha
Subscribe to our feed
Click here to subscribe

Or enter your email address here, and you'll get new posts delivered via email:



Powered by FeedBlitz

Recommended Books and Programs
  • The E-Myth Revisited
    The E-Myth Revisited
    by Gerber, Michael E.
  • Get Slightly Famous: Become a Celebrity in Your Field and Attract More Business with Less Effort, Second Edition
    Get Slightly Famous: Become a Celebrity in Your Field and Attract More Business with Less Effort, Second Edition
    by Steven Van Yoder

    A must-read for all business owners

  • Made to Stick: Why Some Ideas Survive and Others Die
    Made to Stick: Why Some Ideas Survive and Others Die
    by Chip Heath, Dan Heath

    How to create unforgettable messages

  • E-Myth Mastery: The Seven Essential Disciplines for Building a World Class Company
    E-Myth Mastery: The Seven Essential Disciplines for Building a World Class Company
    by Michael E. Gerber

    Implement the E-Myth business habits

  • Duct Tape Marketing Revised & Updated: The World's Most Practical Small Business Marketing Guide
    Duct Tape Marketing Revised & Updated: The World's Most Practical Small Business Marketing Guide
    by John Jantsch

    Just what it says it is!

  • Never Eat Alone: And Other Secrets to Success, One Relationship at a Time
    Never Eat Alone: And Other Secrets to Success, One Relationship at a Time
    by Keith Ferrazzi, Tahl Raz

    Masterful networking resource!

  • What Business Should I Start?: 7 Steps to Discovering the Ideal Business for You
    What Business Should I Start?: 7 Steps to Discovering the Ideal Business for You
    by Rhonda Abrams

    A practical approach to uncovering your biz idea

  • The Complete Idiot's Guide to Growing Your Business with Google
    The Complete Idiot's Guide to Growing Your Business with Google
    by Dave Taylor
    Fundamentals of being found on the Internet
  • Good to Great: Why Some Companies Make the Leap... and Others Don't
    Good to Great: Why Some Companies Make the Leap... and Others Don't
    by Jim Collins

    What matters in building a great business

  • The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich
    The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich
    by Timothy Ferriss

    Surprisingly practical for such a fanciful idea

  • The How of Happiness: A Scientific Approach to Getting the Life You Want
    The How of Happiness: A Scientific Approach to Getting the Life You Want
    by Sonja Lyubomirsky

    Practical implementable ways to create happiness

  • Mastering Online Marketing: 12 Keys to Transform Your Website into a Sales Powerhouse
    Mastering Online Marketing: 12 Keys to Transform Your Website into a Sales Powerhouse
    by Mitch Meyerson, Mary Eule Scarborough

    The nuts and bolts of Internet marketing

     

  • The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly, 2nd Edition
    The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly, 2nd Edition
    by David Meerman Scott

    Using blogs, podcasts, viral products etc to reach your target market

  • Concierge Medicine: A New System to Get the Best Healthcare
    Concierge Medicine: A New System to Get the Best Healthcare
    by Steven D. Knope M.D.

    The only book on the topic!

  • The Medical Practice Start-Up Guide
    The Medical Practice Start-Up Guide
    by Marc D. Halley, MBA and Michael J. Ferry, MPA

    A thorough guide to getting started in practice

  • Yes!: 50 Scientifically Proven Ways to Be Persuasive
    Yes!: 50 Scientifically Proven Ways to Be Persuasive
    by Noah J. Goldstein, Steve J. Martin, Robert B. Cialdini

    Encapsulates the best thinking about how to influence others

    -----------------------------------------

  • Finding Your Own North Star: Claiming the Life You Were Meant to Live
    Finding Your Own North Star: Claiming the Life You Were Meant to Live
    by Martha Beck

    Discovering what your Essential Self really needs

  • Are You Ready to Succeed? Unconventional Strategies to Achieving Personal Mastery in Business and Life
    Are You Ready to Succeed? Unconventional Strategies to Achieving Personal Mastery in Business and Life
    by Srikumar S. Rao

    From a business professor comes the teaching that has inspired hundreds of MBA students

  • Tribes: We Need You to Lead Us
    Tribes: We Need You to Lead Us
    by Seth Godin

    A fascinating look by a master marketer and future thinker about how clear messages and contemporary tools are enabling the much-needed formation of loyal followers - a leader's "tribe"

  • eBoot Camp: Proven Internet Marketing Techniques to Grow Your Business
    eBoot Camp: Proven Internet Marketing Techniques to Grow Your Business
    by Corey Perlman

    Read my review here.

  • Endless Referrals, Third Edition
    Endless Referrals, Third Edition
    by Bob Burg

    A networking classic that shares immensely practical information on how to build a network that really delivers!

  • Career Renegade: How to Make a Great Living Doing What You Love
    Career Renegade: How to Make a Great Living Doing What You Love
    by Jonathan Fields

    A must-read for anyone wanting to flee the fold and launch a new and different career.

  • A Whole New Mind: Why Right-Brainers Will Rule the Future
    A Whole New Mind: Why Right-Brainers Will Rule the Future
    by Daniel H. Pink

    Dan Pink's brilliant analysis of what skills are needed to thrive in the 21st Century in business.

  • Entrepreneur's Notebook: Practical Advice for Starting a New Business Venture
    Entrepreneur's Notebook: Practical Advice for Starting a New Business Venture
    by Steven K. Gold

    A useful book written by a physician

  • Escape From Cubicle Nation: From Corporate Prisoner to Thriving Entrepreneur
    Escape From Cubicle Nation: From Corporate Prisoner to Thriving Entrepreneur
    by Pamela Slim

    Humorous, practical, excellent guide written by my dear colleague, Pam Slim

  • The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything
    The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything
    by Guy Kawasaki

    Guy Kawaski's classic about starting your own business

  • The Intelligent Entrepreneur: How Three Harvard Business School Graduates Learned the 10 Rules of Successful Entrepreneurship
    The Intelligent Entrepreneur: How Three Harvard Business School Graduates Learned the 10 Rules of Successful Entrepreneurship
    by Bill Murphy

    Great and inspirational stories -- I've blogged about several of the "secrets"

  • The Art of Possibility: Transforming Professional and Personal Life
    The Art of Possibility: Transforming Professional and Personal Life
    by Rosamund Stone Zander, Benjamin Zander

    Most enlightening -ten vital practices to develop the attitude that transforms how you live your life

BlogCatalog

Medicine Blogs - BlogCatalog Blog Directory

Google+
« Physician happiness at work - tip 1 | Main | An entrepreneurial physician's road to success is paved with doing one's homework »
Monday
May232011

A Tale of Two Medical Practices...

... or are you a Resigned Relic, or Defiantly Solo?

Two recent encounters with solo medical practices demonstrated to me the stark contrast between the medical practice business model stuck in the 20th century and that of one that has boldly stepped into the 21st century.

A New York Times article of a month ago profiled Dr. Ronald Sroka, a solo practicing family physician in Maryland whose life as a doctor had deteriorated to the point that he elected to retire at around age 62, and sell his life-long family practice.

Selling the practice proved an impossible task as the younger generation of doctors had no desire to acquire a 4000-patient medical practice with significantly declining revenues and the prospect of long working hours to compensate.

Had he left a decade ago, Dr. Sroka might have been able to persuade a doctor to pay $500,000 or more for his roster of 4,000 patients. That he cannot give his practice away results not only from the unattractiveness of its inflexible schedule but also because large group practices can negotiate higher fees from insurers, which translates into more money for doctors.

In other words, this practice had no value in the marketplace!

It's not hard to see why, with clues coming from the following paragraph:

On most days, visitors are greeted by Betty Alt, a sweet 68-year-old who knows many patients intimately. Patients’ medical folders — many bulging with decades of aches and test results — are retrieved by Jennifer Simmons, a 41-year-old office assistant who spends much of her day faxing. Before appointments, patients often give a urine sample to Chris Minner, 58, a medical technician.

Altogether, Dr. Sroka employs 10 part-time employees, or the equivalent of five full-time workers. He does not provide his staff members with health insurance. His expenses amounted to $420,000 last year, or about $200 an hour. Most of his patients have either Medicare or CareFirst, the local Blue Cross Blue Shield plan, which pays him $69 (including a $20 co-pay) for most consultations. At that rate, he breaks even at three visits an hour and needs a fourth to turn a profit.

Underutilization of technology (no EMR), overstaffing, and a huge overhead have clearly contributed to this practice's demise.

Let's contrast this older doctor's practice with that of a physician of a similar age.

Internist and nephrologist, Dr. Robert Novich, with whom I had the pleasure of doing a podcast several weeks ago tells a very different story.

Facing the same problems in his solo medical practice, Dr. Novich began digitizing and automating as much of his workflow as possible, many years ago when he spotted the potential of computers to streamline his practice operations.

In doing so, he was able over time to eliminate costly overhead in the form of staff, misplaced medical records and documents, and hours spent trying to communicate by phone with patients.

Together, he and his son Jeffrey Novich built the platform off which he runs his solo medical practice (also known as a "micro-practice"), and that they are now offering to colleagues in the form of a web-based patient communication tool, Patient Communicator.

Talk about necessity being the mother of invention!

If you haven't already done so, I'd encourage you to listen to his inspiring tale of transformation.

Then ask yourself and your physician colleagues, "How must we adapt to bring our medical practice into the 21st century, in order to not only survive but to thrive?"

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (1)

Interesting Case Model on Micro Medical Practices [MMP]

A micro medical practice [MMP] is a low overhead, high-tech and Health 2.0 enabled, labor reduced and often mobile office model that allows more physician control and patient face-time.

This concept can be extended to those patients who want or need to pay cash for their health care; high deductible health insurance, health insurance with high co pays and residuals, etc.

It is a growing micro-trend.

Dr. David Edward Marcinko MBA
http://www.BusinessofMedicalPractice.com

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.