The Chiropractic Practice Model Innovation

The Chiropractic Practice Model Innovation

By Dr. Michael Perusich 

 

It’s been said that as much as 40% of Chiropractic practices are down since the pandemic.  Couple today’s economic issues with high prices and declining disposable income, and the numbers may be even higher.  

Let’s dissect these numbers.  If 40% are down, that means two out of every five practices may be losing money!  And, of the other three out of five practices, one is experiencing no growth, one with small growth, and one is seeing explosive growth!

So how is it that only 10% or so of Chiropractic practices are seeing explosive growth at a time when more and more people are seeking out healthcare services in the wellness model, and desirous of care plans prescribed without drugs and surgery?  

Think about the dichotomy - potential patients are actually searching for the care we provide and yet nearly half of the profession is in a slump at a time when, in my opinion, Chiropractic should be booming!

Let’s face it - part of the profession is, in part, suffering from somewhat of a slump.  Whether it’s a “poverty complex” mentality brought on by a declining economy, not managing the inflationary factors correctly, or trying to play the insurance game, the slump is real for some practices.  And the longer the slump persists, the more we see clinics playing the Ponzi scheme game.  

Lowering new patient fees, cutting back on necessary care, and getting sloppy with documentation, trying to offset declining reimbursement by purchasing expensive revenue centers, the knee-jerk reaction to overcome the slump actually compounds the problem by robbing from one pocket to pay the other.

The result is, these efforts only compound the slump even more.

According to Jim Collins, author of the book Good to Great,  “If a company lowers prices to increase growth, its (overall profit) could deteriorate.”  Plus, you set the patient-retention factor up for failure when you present a big treatment plan after the discounted first-day services.  

This method literally creates sticker-shock, low value perception for the patient, and can damage the doctor-patient relationship when the patient quits care and tells ten others about their horrible experience in your Chiropractic practice.

So why do we see so much competition-based pricing in the Chiropractic world today?  After all, new patient promotions were the key to practice growth 25 years ago.  Why are they perceived differently today and result in detrimental effects on the Chiropractic practice?

Well, there’s more than one reason, which I have previously addressed in several seminars and other articles.  However, one thing is certain.  We have to come to the realization that things change...yes, even in the Chiropractic profession!  

Chasing the new patient by luring them in on price is the final stage of an old model of Chiropractic practice management.  Today’s model has changed dramatically due to patient buying habits, social media, and information technology such as Google.  

Those Chiropractic clinics that have recognized the changing tides and retooled their business model to move in this new direction are doing well.  Patient visits are up.  These practices are focusing on creating strong value-for-service with patients.  They are developing long-term patrons of the practice as they focus on the retention factor over new patient numbers.  And, best of all, their profits are way up and the Ponzi scheme is gone! 

The bottomline is this - if your Chiropractic practice is down, you’re giving away first-day services, and your 30-day retention is low - then you may be stuck in the time warp of trying to hang on to the old model of Chiropractic practice management.  

It may be time to pull yourself out of the Chiropractic slump and realize the paradigm has shifted.

Chiropractic is currently at an interesting crossroads.  In fact, most healthcare professions are juggling this same conundrum and making massive changes to their practice business models.  

How we react, and the changes in direction we make in our Chiropractic businesses, will likely dictate how we each succeed in the future.   Chiropractic business model innovation can keep you ahead of the curve when it comes to Chiropractic practice success.

Accepting the fact that change is in the air is the first step to Chiropractic success.  The second step is understanding how to move in the right direction.  And that’s where a great Chiropractic Coach can help you manage change and continue on the path to success.

   

Dr. Michael Perusich is a solutions-focused advisor with more than 25 years of success across the healthcare and consulting industries. His broad areas of expertise include coaching, training, content development, and motivational speaking.  Dr. Perusich is the CEO of Kats Consultants, LLC. where he and his team offer a unique platform of business knowledge and tools for today's Chiropractic entrepreneur.