What I Can Help You With
Case Study 1: Not Knowing What You Don’t Know
Diana and Tim had been practicing therapists for 8 years. They’d owned a practice for two years, after they took over their former employer’s business.
You could say they were “sailing without a compass.” Diana found me through my podcasts and attended my one-day workshop. Tim, being very reluctant to hire a “consultant,” didn’t think they needed any help.
Tim said, “Maybe a little help and marketing, because who couldn’t use some new patients?” He agreed to do my one-day PPO in-office event. I have very simple rules: Be open and honest with me and I will be the same with you. They paid my $2,500/day fee with my unconditional guarantee.
I got in and immediately saw some red flags:
- Some of their insurance contracts were not renegotiated or were dropped.
- Their clientele were nice enough, but started going to other providers, including POPs, outpatient hospitals, and former staff.
- I asked about physical therapy retention, attrition rates, and their best payer. All of my questions were met with best guesses, not facts.
But my biggest red flag was the fact that the owners did not run their practice—the office manager did. They only wanted to treat patients. If you only want to treat patients then you should be an employee, not an owner.
I found that their best payer was Medicare and second-best was Aetna. We discovered enough to know that if they kept going at the pace they were going, they would be out of business in three months.
They took over a practice, but didn’t know it was dying. Their office manager who helped the former employer run the practice (and who was paid the most) didn’t even know the numbers.
Not knowing your numbers is the kiss of death.
I also knew that they needed to understand how the business worked and that it was time to let the office manager go. Her salary of $95K could not be justified by her knowledge base or skill set. With that money freed up, the office could be spruced up a bit.
When I started working with them, they were at -$40K a month (net) and a gross of $75K a month. In three months, they were +$17K a month.
They dropped two of their worst contracts. They fired all nonessential employees and created a training program for all new hires.
We created a cash program for all their past and former clients to join a monthly continuity program. This program was designed not to make money but to create a massive stockpile of clients for their practice instead of for the competition.
We also added two additional revenue streams: first, I became their business partner, and second, out-of-network clients were billed per day. Due to this, they no longer needed to treat Worker’s Comp, Medicaid and even Medicare.
They thought Medicare was their best payer, but that clientele took up most of their time. So in simple math, they had been making $100 per hour on one patient instead of $60 every half hour with two patients.
I’m happy to see their practice has now become a huge competition to others. We attract a lot of other therapists from neighboring clinics. The word has gotten out.
And, best of all, Diana and Tim are owners and not employers.
Case Study 2: Two Steps Back… Many Steps Forward
Imagine having your senior therapist and office manager quit within a week of each other only to find out they are opening their own clinic about two miles away—and taking a host of your clients with them!
This happened to my client Ryan M who had originally teamed up with me to add new revenue streams to his practice. We were only working together for one week when his staff left.
So, I took over and helped Ryan rebuild his practice. The first thing we did was assess the rest of his staff’s personality and cognitive profiles. We then had a leadership meeting for Ryan to implement immediately.
The clinic was losing about $35K a month. In addition, because he had one less therapist, he couldn’t handle his usual volume of patients. He was losing between $500 and $1200 every day. It was all starting to add up fast…very fast.
He was in crisis mode. His current staff team was worried. What would happen? Should they start looking for a new job? Once Ryan and I completed the profiles and had the staff leadership meeting, the decision was made. I promoted two and fired one. Yes, I fired one. She was going to be a poison to any new hires.
We started my formal three-part hiring process. We were desperate. But not so desperate that we would take just anyone. I also put together a marketing campaign for past patients about a new charity we were involved with and how we were moving forward with new and exciting treatments. I also attached a CD and 10 video testimonials from our current patients.
The entire process took 90 days, but Ryan came out on top with a better staff, better systems in place, and a brighter, more automated practice. He learned the value of leadership. And contrary to what most therapists believe, it comes with a monetary value.
When we started, Ryan’s practice was losing $50K a month due to poor leadership. He is now generating $80K a month and opened his second clinic using the same system. It’s already generating $17K profit monthly.
“Dr. Joe is a business genius and it is an honor to work with him.”
– Richard Berman
“Dr. Joe partners with you to help you make those small tweaks in your strategic plan that truly matter so that you can be effective in a competitive market.”
“Dr. Joe is someone I highly recommend you consider working with if you are looking to take your private practice to the next level.”
“With his clinical expertise as well as his well-rounded business acumen, he was able to bring out both the advancements on the clinical side as well as how business owners could use something of this nature to drive practice growth.”
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