I was visiting yesterday with a very well qualified practice administrator who informed me that her position was being eliminated in a cost cutting move to prop up the profits of the practice. As you can guess, the wife of the physician is going to now become the administrator (she has been working in the practice the whole time however).
This is another case of a physician stepping over dimes to pick up nickles. Instead of attacking payer reimbursement and aggressively marketing the practice to increase production, the physician would rather cut overhead instead. In these cases, this type of cost cutting is going to hurt the practice instead of helping it in the long run. It doesn’t take a rocket scientist to figure this one out.
Forget for a moment that the doctor is already making 300k but can live on this amount………….this is a classic example of a practice operating without a strong strategic plan. Instead, it is making crucial decisions on a day to day basis; does this sound familiar to anyone? I wish physicians would have better business heads on their shoulders but I guess if they did, my consulting work would go way down!!