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Why Being Profitable Matters

Why Being Profitable Matters

Today we talk about why it is important to plan for profit in your healthcare practice

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Or check out the transcript below

Kate Markland: Good afternoon. Welcome to Wednesday 11th of November. We’re going to be talking about wealth on Wednesdays and making sure that you’re creating wealth within your healthcare business to keep your confidence and interest in the business that you’re creating. If you aren’t profitable, then you’ll start to get really disillusioned and lack the confidence to be able to contribute and give your maximum contribution to your community and team. So today we are talking about why it’s important we focus on the wealth creation within your health care business. So Celia, you chose today’s topic on knowing the numbers. Why did you particularly want to bring that up today

Celia Champion: I think that, the numbers is the one thing that a lot of practitioners attempt to avoid. And, often I can, I’ll go into a practice and, you know, we start talking about the numbers and they’re very quick to tell me how many patients come through the door. So how much turnover they make. But a lot of, a lot of the time, there’s not really any understanding about what the bottom line profit is after they’ve paid all their associates and expenses and so forth and stuff with them. And sometimes they just don’t know the numbers at all. And, I kind of feel like they’re not making enough, but are too fearful of looking at the numbers. And sometimes accountants speak is daunting. So, you know, I feel really passionate about making the numbers as simple as possible, and it’s better to know what the numbers are. Then wake up at three o’clock in the morning and wonder what the numbers are. Even if, even if the numbers are worse than you think they are rather know that and be able to put something in place, to make a plan, to turn them around.

Kate Markland: So many clinicians and clinic owners do exactly the same as I did in that we we’re passionate about our profession and we’re passionate about the contribution that we make to clients’ lives. And we want to, increase that impact. So we up clinics or our healthcare business as a labor of love, really, we’re not really at the start motivated financially. What we’re motivated by is helping people get better and using our professional skills to do that. But if we don’t progress from being a technician to being a business owner, and don’t start looking at the numbers, we can find that our passion or hobby actually starts to drain us. And as you say, wake us up at three o’clock in the morning with worry, because we don’t know what those numbers are and what, what they, what they mean and what the impact of them is.

Celia Champion: Yeah. And there’s also a real, I mean, I can’t tell you how many conversations I’ve had with practitioners who, you know, phone me up and say, you know, we’re thinking of putting our prices up. What do you think And then they’ll say, well, we’re going to put it up by one pound or two pounds, and then they deliberate and they deliberate and they worry about what’s going to happen and

worry about, you know, being seen as kind of money grabbing rather than actually looking after their business. Because sometimes you do need to put your prices up. So now with all that extra PPE expense, with the fact that you’ve got to have more time, more time in between appointments, it has to be a real consideration. It does need to be considered, do we need to put our prices up so that we can sustain our business so that we can continue helping the people.

Kate Markland: Absolutely. And I think one of the things that we so often forget as clinicians is the value that we add to people’s lives. I’ve had a couple of calls this week with podiatrists and foot health practitioners. And as a Physiotherapist, they have skills I don’t have, so I can see their skills and I can see the impact that they bring to other people’s lives. And know the reasons why I’ve referred to them. But to me, they’re undervaluing themselves and being incredibly humble about their skillset because they don’t see that treating the fungal nail is anything very exciting or special. Whereas I know that if you’ve got a fungal nail as a patient, this is a major deal and aa a physio there’s nothing I can do about it. So, I think it’s really important that we at the value we bring to client’s lives and start to understand the value of the impact that we make on their lives and not feel guilty about charging for the right price or feel guilty about the fact that we’ve got a spreadsheet that shows us the numbers of our business.

Celia Champion: I ran a patient management and communication workshop yesterday, and I had a physio in there and she’s, she was in the NHS for many years and is now a private practitioner. And she really struggles with charging her patients and really struggles having those conversations and really struggles, not kind of feel the patients should be able to get it for free. And, you know, I kind of say to her, well, you know, the patient’s chosen to come to you privately because they

get a service quicker. They don’t have to wait for the service. They get more attention from you, you know, you can you offering them something different. And I’m not saying that that, that it’s better or worst or whatever it is, a different service.

Celia Champion: And the patient has chosen to come to you and they’ve chosen to come private. So they have chosen to make an investment. So the worst thing you can do is kind of means test the patient and then kind of think, Oh, I’m not so sure that this patient will afford it, or it’s so expensive s o I’ll just offer them half of what they really need. You know, that’s wasting their money. So, you know, when patients come to you privately, you’ve got to give them your best clinical recommendation and your patient will work out the finances, your job is being the expert physio in the room and your patient can manage their finances. You’re, you’re not a financial manager, you’re a physio a podiatrist or therapist.

Kate Markland: Now next week, we’ll start being able to tell you a little bit more about the five day challenge that we’re going to be running to help you as a clinic owner, get your business organized and ready for 21. In the meantime, what would be a brilliant exercise is to just make a list of all of your expenses in some way, and have a real good look at your pricing and what your revenue is so that you can start to understand not just what your expenses are but what your income is as well. And there’ll be some very obvious things that stick out to

 

you. So just make a list of all of your expenses and then have a look at your pricing, your appointments, because parts of it will be non-sensical and some you’ll see straight away . You can either do this on a weekly, monthly, or quarterly basis, what this easiest for you. And that will help you prepare for the five day challenge that’ s coming up early December. Great. We’ll see you tomorrow. Tomorrow we’re going to be thinking about the importance of gratitude and appreciating what we’ve got which is particularly relevant to during this time. So take care of, and we’ll see you tomorrow.

Celia Champion: Bye.

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Kate Markland

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