Last week I talked about the historic outcomes of business strategy during previous economic downturns. The jury is still out on whether we will officially enter a recession, but facts are facts. We are experiencing significant inflation, which means the cost of existence is increasing. The rates of inflation vary across markets, and even without a supply shortage, the cost of transporting those goods to the end-user is increasing with no good solution in sight.
So, I stand by my statement that the business decisions you make in the near term can have a serious outsized impact on your future. The good news is that your OPIE System, which is so much more than a patient record system, is the most powerful tool available to O&P practices as you seek to strategically manage your practice.
The “best practices” identified and vetted by your peers have informed the business intelligence tools and the Choice Acuity Reports that give you unprecedented and unparalleled insight into your operations and the opportunities for improvement that can most impact your business. As times get harder, your best chance of success is to focus on your output. This means to take a fresh look at your mission, your purpose, and determine how you can fulfill that despite the fresh challenges.
While your first reaction is to minimize losses and protect what you have, that approach is the one that is most likely to lead to your downfall. Roughly 4 of 5 companies that take this approach underperform their peers coming out of a recession, according to the Harvard Business Review. The course of action most likely to lead to success is one where you strategically invest in your people, processes, and tools to reduce your operating costs by increasing efficiency and productivity. This allows you to avoid staff reductions and other painful actions. Your goal should be to eliminate wasteful spending and make the most of the resources available to you.
How are your people spending their time? How much does it really cost you to deliver an AFO? A TT prosthesis? How many visits does it take your practitioners to “get it right?” How many follow-ups, on average does each practitioner have? Could their time be better spent on Evals and Deliveries? How much time does your CPO spend fabricating?
How long does it take you to bill for the services you provide? How many days, on average, does it take from when the clinician sends the codes to admin until we deliver? Or send the bill to the payer? Are there things you can do in your practice to speed this up? A dollar today is worth more than a dollar tomorrow, so how do you shorten the time it takes to collect those dollars?
OPIE Business Intelligence makes it easy to find opportunities to improve. If we can help you save or find just 48 minutes per day in “wasted” activity, that equals about an extra month in the year. How much more revenue could you achieve with one more month? Do you think that could give you a competitive advantage?
At OPIE, our team is committed to your success. Let us help you make the most out of your practice.