Patient’s Perceptions Are Reality
Unless well thought out by design, as physician practice owners we can end up setting up our physical practices and fees on a fear-based mentality. You know, you’ve heard it too – either from others or that little voice in your head “patients will never pay that…” or “that’s way too nice for a doctor’ office…” or something else along these lines.
Let’s cut right to the chase. The bottom line in any business (yes, in private practice you ARE in business!) is patient’s perception is reality!
When patient care, staff and physical expectations are exceeded, price so often never needs any explanation!
Let me ask you this: would you walk into a Mercedes dealership and expect it to look less than exceptional, or to walk away with a new car for less than $40,000?
Of course, you wouldn’t—and neither do your patients.
But a huge problem for physicians can arise when we present or price Mercedes level services in a less than appropriate appearing space, and or with sub-par prices.
Like it or not, patient perception is reality. To be as successful and profitable as we should be, everything about our practices must exceed perceived value!
To try to backpedal from an underpriced physical or financial position in your private practice is extraordinarily difficult.
Far too often, ill-advised physicians or those just “winging it” end up struggling because they’re giving away too many added services for free or have regular fees priced way below what they should be.
So, let me ask you: when was the last time you sat down with your monthly reports from your bookkeeper and accountant and figured out what it takes to run your practice—and what your actual overhead is?
Too many private practitioners will perform this exercise and find out the tradesmen they are treating may be taking home more in weekly paychecks than they are.
This is an incredibly sad fact. But it is a choice.
The solution is, we all need to continually grow our business & financial education just like our clinical skills!
So often it is our own attitudes about money that are holding us back and stopping growth in practice!
Don’t discount this.
Fees and physical office design are big issues that we can help you deal with.
Fortunately, on this platform we can, and should have these important discussions with each other on a regular basis!
So, please spend some time investigating other successful docs not only your own region but just what the top docs in direct care are doing and collecting daily!
The whole insurance mentality has warped people’s minds. Personally I am against insurance in general except for catastrophic loss prevention. The whole insurance business is dependent on spreading risk and I believe my risk is very low- doesn’t everybody? My parents lived to be 93, I am fit and don’t smoke, so why was my health insurance premium over $1200/month. Plus I did everything i could on a cash basis- paid for lab work- annual checks and PSA’s, got a preventative CT colonoscopy, heart calcium test at bargain basement prices by direct pay. If my family’s cars get in minor fender benders, i pay cash to fix them. I am too scared to even have that big insurance claim registry find my name anywhere. Yes i did make claims after 2 Florida hurricanes, and i ended up super pissed about how aggressive my insurance company was with denying payment. The only decent insurance company is USAA and at least we all understand what Medicare pays. All other insurance companies are crapshoots. Many of my senior citizen patients think insurance is supposed to cover everything or else i should just bill them. I wonder how often the local grocery store or car repair shop works like that? But no, we have to explain what a co-pay and a deductible is and we are only in network with a couple of insurance companies. If patients do not think I am worth it, THEY SHOULD GO ELSEWHERE……and then they frequently return……especially when their insurance company gives them an in-network specialist who is 30 miles away!
Good points all. In my brief run, I was shocked by the heavy overhead and slim margin, as well as the nasty attitude from so many when asking them to pay their bills.
Glad I left, and would only return to private practice if it were the only way to eat. And it would be 100% cash only, a DPC variant, and no exceptions.
Perceptions go beyond the above. A few years back, I had a patient who came to see me. I was out of network. He got angry at the bill saying he only had to pay $10 in network and I should be glad to accept that. He felt that was the value of my services.