By Jeff Akers, CPA, Senior Consultant, McKesson Business Performance Services
Independent physician groups (whether a solo practitioner or a 100+ physician mega group) really should be viewed as mini corporations requiring the same application of standard business practices as traditional non-physician businesses. The physician groups that routinely apply these practices are typically better positioned for long-term success and survival. Conversely, those groups that don't make the effort are often disorganized, disconnected from the evolving needs of their respective facilities and financially weak.
One of the key standard and highly-recommended business practices is to conduct an annual evaluation of your group's general performance including, but not limited to:
- A review of professional staffing requirements, including any pending departures (or physicians entering into a part-time or reduced call scenario) and recruiting needs based on volume, productivity and/or specialty need;
- A review of group business expenses including their overhead cost structure;
- An analysis of the group's benefit and compensation structure and;
- An evaluation of the group's revenue stream and payer agreements.