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.
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