The Profitable Chiropractic Staff

The Profitable Chiropractic Staff

By Dr Michael Perusich

How many patients can you see in a week?

Some of you may see 40, while others may see 80 patients.  Some doctors might even see as many as 200 patients per week.  

We’re all different and there are certainly a multitude of variables that determine how many patients we can treat each week.  The only constant is we all have a capacity ceiling.

So how do you keep the profit growth curve going up if capacity is limited?  In some ways, it’s quite the conundrum.  Let’s explore…

First, you could just keep raising your fees.  However, in an insurance-based practice, this won’t have much of an effect on profitability because your reimbursement is set by the third-party payor.  Raising fees often just creates more write-offs which means you do a lot of work for which you don’t get paid.  And there’s only so much leeway with increasing fees on cash patients before they begin to fade from the practice.

Another option is you could focus on increasing capacity and try to see more patients.  Overhauling processes and procedures, modifying hours, and moving to more of a wellness/maintenance model can help increase your patient visit capacity.  However, the downside is this can be more physically challenging, your clinic space may only accommodate so many, and expanding your hours can have a potentially negative impact on staff and work-life balance.  Plus, there’s also the physical aspect of seeing more patients that must be considered.  Let’s face it, we sometimes wear out over time! 

A more prudent option is to add additional cash-based services.  You may still fall into some of the same traps with insurance and cash patients when it comes to fee structure.  However, some of these added services could be operated by your staff, and that’s where the profit game shifts to your benefit.  

Let’s look at an example of adding laser therapy to the practice.  

First, you will likely be able to make this a cash service.  That means you collect your entire service fee for that therapy, there’s no filing expense, and no third party requiring you to write-off part of your profit.  In addition, if a staff member can perform the service (know your state practice laws), that frees you up to see more adjustments…the bread and butter of practice profits.  Also, because staff is paid at a lower salary rate than the doctor, your return-on-investment on the service is much better.

This approach actually creates a sound option for bending that profit curve to the positive.  A properly trained and developed staff can serve as a profit-partner in the clinic to help you increase capacity by adding an extension of the provider when your practice act allows.  

In many states, staff can assist with services such as therapies, x-ray, and rehab.  Hiring a radiology tech or exercise therapist can be a great way to focus doctor time on physician-based services such as adjustments and exams.  This allows you to book more of those services, while staff performs other revenue producing functions.  Ultimately those areas of production become more profitable as lower paid staff are operating them. 

When you look at the value of staff-conducted revenue generation, there can be substantial profitability developed without putting all the work on the doctor.  Plus the patients enjoy the added service, value, and outcomes of broad-based care options. 

Developing your staff into successful partners in your practice is a win-win for everyone.  

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 for Kats Consultants, LLC. where he and his team offer a unique platform of business knowledge and tools for today's Chiropractic entrepreneur.

Check us out at katsconsultants.com