Things to Think About?
The 12 Key Elements for Building a Successful Investment Grade & Socially Responsible Practice
Objective – To leave a legacy and not a liability.
Why Best Practice Indicators?
As a practice owner your ultimate goal is to eat well and sleep well. If you own a practice you must be able to:
- Sell your practice for a fair value without golden hand cuffs
- Make it work for you and not the other way around
- Choose to come to work and not need to come to work
Your overall objective should be to leave a legacy and not a liability to the community you serve in.
How do we rank your practice?
In our Best Practice Series we rank and certify practices into 3 categories from highest to lowest. By achieving an investment grade status or higher you should be able to achieve the above goals. We use the matrix below called Health and Life’s Best Practice Index – 12 Key Factors for establishing a successful investment grade practice.
The 3 rankings are:
- Blue Chip = greater than 11 out of 12 items.
- Investment Grade = greater than 9 and less than 11 out of 12
- Investment Grade Potential = less than 9 out of 12
A practice restructure maybe required to achieve these results – it is a process and not an event. Normally it takes 2-3 years to see the final result although immediate benefits arise by embarking on this journey.
Where to from here?
If you are not prepared to reinvest in your practice it is time to think about your options. Alternatively decisions about whether to amalgamate, retire or corporatise are some other options worth considering. After all there is no point in throwing good money after bad.
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.