Listen in or watch as host David Mandell speaks with practice consultant Jessica Jones.
David begins asking about Jessica’s career and how she ended up working with medical and dental practices. Jessica then shares with David the pain points doctors typically have when they contact her—how they want to see their practices, and lives, improved.
(Video Available November 27, 2024 at 6 AM Eastern)
Jessica then speaks to David about the importance of finding the doctor’s passions and how to align the practice with those passions, along with patient needs—potentially with a cash-based revenue element outside of insurance reimbursement. She then digs into the details around service offerings, equipment purchases, the importance of delegation and other key success factors her experiences has discovered are valuable—in cash-based practices or traditional ones.
Finally, Jessica stresses the importance of brainstorming and getting out of the daily grind to have perspective on what is working and what could be improved.
TAKEAWAYS:
Takeaway 1: The Benefits Of Transitioning To Cash-Based Medical Practices
Jessica shares insights on the benefits and process of transitioning to a cash-based medical practice. She points out that the landscape of medical practices is changing, with many practitioners seeking alternatives to insurance-dependent models. The cash-based practice model offers a solution, allowing providers to focus on patient care, reduce reliance on insurance companies, and increase practice autonomy and profitability.
Jessica explained, “Frequently people reach out to me to help add a revenue stream. I add revenue streams based on what that practitioner can be passionate about.” She further emphasized that “it’s not all or nothing”, meaning a practice can transition gradually to a cash-based model while still accepting insurance. However, she cautioned that each additional service or product needs to be thought through carefully to ensure viability and profitability.
Jessica also shared the common pain points that drive practitioners to seek her expertise, such as burnout, frustration with insurance constraints, and the desire to offer services that insurance doesn’t cover. “Insurance doesn’t pay for prevention. They pay for the urgent need. And so when you think about that and you think as a practitioner, “Wow, I really wish that I could have seen this patient five years ago,” she stated.
Takeaway 2: Ensuring Viability And Profitability In A Cash-Based Practice
Jessica Jones offers practical advice for practitioners considering transitioning to a cash-based practice. She emphasizes the importance of considering patient needs and interests, the practitioner’s own passion, and the financial viability of any new cash-based services. Jones also discusses the consequences of poorly planned transitions, such as investing in expensive equipment that fails to generate enough revenue.
Jones explains, “You’d want to know, okay, first you’d want to make sure that you’re working through it. Everything makes sense financially, right? How much is it going to cost to add this in? What is it going to be able to bring in?” She added, “There’s so many times that somebody’s looking at bringing in a device or a piece of equipment to add a revenue stream and it seems great, and salespeople are really great at saying, “Oh, it only takes one or two patients to pay for this device.” And then when we really work through it and talk through it and look at the population and the patients that are in their practice and who they’ll have to bring in, it really quickly fizzles out and you realize it’s not as easy as they make it seem.”
Jessica also highlights the importance of taking a step back from the day-to-day operations of the practice to see the big picture, stating, “So many times people are so stuck in the minutia of the day to day, that they can’t see the big picture.”
Takeaway 3: Starting A Cash-Based Practice From Scratch
For practitioners looking to start a brand-new cash-based practice, Jessica provides guidance on the key factors to consider, including understanding the costs, timeline, and potential revenue streams. She also emphasizes the need to ensure that any new services are compatible with the practitioner’s area of expertise and the needs of the potential patient population.
Jessica advises, “Is it going to be right for you? And then it’s talking about what you’re passionate about, and then it’s really helping to solidify the concept, make sure it’s viable, show how to look at putting together, what are the costs going to be, what is the timeline going to be?” She further notes that practitioners should be cautious about making large investments up front, particularly in equipment that may not generate sufficient revenue.
She also stresses the importance of understanding the market and patient population, stating, “You can’t just kind of put together two completely separate things that have no relevance to the current patient population.” Instead, she advises that new practices should start with services that align with both the practitioner’s interests and the needs of their potential patients.
INSIGHTS
- Burnout is a common issue among medical practitioners, and Jessica helps them address this by restructuring their practices.
- Jessica works with a diverse range of medical professionals, including chiropractors, dentists, surgeons, and nurse practitioners, showcasing the broad applicability of her expertise.
- Common pain points for her clients include administrative burdens, lack of time with patients, and insufficient business knowledge.
- Jessica often helps practices diversify their revenue streams by adding services that align with the practitioner’s passions and patient needs.
- She advises practitioners to thoroughly evaluate new investments, such as expensive equipment, to ensure they are financially viable.
- Delegating tasks and reducing the practice’s dependency on the primary doctor are essential steps for scaling and growth.
- Before adding new services, Jessica recommends creating a detailed business plan that includes financial modeling, marketing strategies, and staffing requirements.
- The discussion highlighted hyperbaric oxygen therapy as an example of a valuable cash-based service that can be added to medical practices.
- Jessica assists practitioners in starting new practices by solidifying their concepts, ensuring financial viability, and advising on timelines and staffing.
- She cautions against overcommitting to multiple new services or equipment simultaneously, which can lead to financial strain.
- Jessica advocates for taking time away from daily operations to think strategically about the practice’s direction, which can lead to more informed and effective decisions.