Ideas to improve the returns on your practices
What is your Business Model?
Warren Buffet, the world’s most famous successful investor and second richest man, says his most favourite business model is the toll bridge. It is cost effective and very profitable once the infrastructure has been set up correctly.
If you are charging your healthcare providers a percentage of gross fees to work at your practice, did you know you are doing exactly what he invests in.
- Eat what you kill, or earn while you sleep?
- Transaction fee-based, e.g. hourly rate or percentage of gross fees received
- Unit or volume charging, e.g. charge per item no. And/or selling consumables. Discounting service fees for higher gross receipts generated per provider
- Licence, e.g. charge a royalty fee for intellectual property
- Membership/subscription, e.g. charge $100 at the first consult and introduce a patient safety scheme – bulk bill after the 10th consult
- Funding debt vs. shareholders
- Practices should maintain $0 overdraft balance
- Plant and equipment should always use borrowed funds
- Encourage new owners by selling an interest in your practice to raise finance, e.g. for a building
David Dahm You Tube video coming check out our Webinar Events that covers this topic.
Traffic Light Reporting Lifecycle using Health and Life ….Read on
For more information on building Customer or patients services Read on…
Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service
David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)
After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.
You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.