Why is Benchmarking important for your Medical Practice?
You can have an instant competitive advantage over other practices through benchmarking. Imagine knowing your position, your strengths and what you need to do to step up your performance. We explain below how benchmarking can help you and why it’s important that you consult an experienced business adviser to get the right outcome.
What is benchmarking?
The objective of benchmarking your practice is to understand and evaluate its current position in relation to others like yours in the industry. This allows you to see how well your practice is performing and identify ways you can become more competitive.
Relevant and timely benchmarking will allow you to take important steps to strengthen the performance of your practice.
What is involved in benchmarking your practice?
As a general guide we will look at the following:
- Identifying areas of success in your practice
- Identifying areas that need improvement
- Comparing your practice to industry trends
We evaluate several areas specific to your practice including:
- Revenue performance – we review patient fees generated, number of consultations per session (including average consultation time and average consultation fee), % private billings, etc. We will report our findings to you and assist in evaluating the results with you, along with recommendations on how to improve performance.
- Expenses – we review your expenses including rent, wages and other operational costs. We will report our findings and provide advice on what areas are able to be improved and what we consider to be ‘best practice’ for your practice. For example:
- Staff are the most important resource in any practice but also the hardest to manage. Getting staff levels and productivity right can make a big difference to the profitability of your practice.
- If your practice rooms have unused space we review the options of getting another doctor or alternatively renting room to an allied health practitioner or pathology firm. We consider the best outcome for your practice by taking into consideration what option would provide the most value to your practice and what is the financial difference between the options available.
- Management – Behind every great practice is a great Practice Manager. Practice Managers provide guidance and direction to ensure that the organisation structure and the management of the practice provides the best patient care. They are in charge of human resources, practice resources/facilities, patient communication, reporting, information technology and more. Their role is critical to the success of the practice. As such, we aim to work closely with the Practice Manager.
Through benchmarking BLG Business Advisers will help you make the best decisions to improve the overall performance of your practice. Find out more and get in touch with BLG Business Advisers online or call (02) 4229 2211 today.