What Are The Priorities Of A Private Practice?

I believe every PRIVATE practice has two priorities. Priority number one is:

The Patient

No question whether or not the patient is priority number one. We always do what is best for the patient.

Priority number two is:

Profitability

Private medical practices ought to have a reasonable expectation of profitability. The fact is, a private medical practice is a business just like the dry cleaning business, just like the grocery business and just like the car dealership business. At the end of the day, more money has to come in, than goes out.

MedicalinsuranceI bring this up because I spend a lot of time talking in function of priority number two, profitability. But rest assure, our private medical practice does not lose sight of our patients’ needs. It just so happens that in our practice, I take care of priority number two while my doc’s take care of priority number one.

Now, many will take issue with my number two priority; especially in this heated health care debate climate. But my response to that criticism is this, if I can’t successfully manage priority number two, I can’t attain priority number one. In other words, if my practice is in financial need, I can’t help patients that have medical needs.

Unless all private medical practices are employed by the government and we don’t have to worry about paying salaries, rent, medical supplies, malpractice insurance, health insurance for our employees, water, electricity, equipment, software, and all the other things that go into running a business, then we have the right to earn a reasonable profit for our business.

So don’t let anybody make you feel bad for trying to earn a profit. And if they challenge you, hand over your private practice’s financial statements, point to the part where it says expenses, liabilities, and payables, and ask them, who they propose pay for all this.

5 thoughts on “What Are The Priorities Of A Private Practice?”

  1. I’d say we could make an earnest attempt at ignoring the profitability side of private practice when med schools, insurance companies, and pharms do the same. Until then, docs have an obligation to keep an eye on the $$, because those other FOR PROFIT entities will bleed them dry.

    I wonder if that sounds more bitter than I intend? 🙂

    1. Bitter? Who, us? Why would we be bitter?

      You forgot to mention Tort lawyers in your list of people that ought to stop making a profit before docs do.

      @PediatricInc

  2. Nice post. Nice blog.

    The bottomline that all physicians must realize is no margin equals no mission.

    If you can’t pay your bills, you can’t take care of your patients.

    If you can’t use profit to invest in technology, patient care suffers.

    I see it as a duty to your patients to make a healthy profit.

    1. Dr. Schoor,

      I couldn’t agree with you more. I like your line, “I see it as a duty to your patients to make a healthy profit”

      Thank you for stopping by and dropping a comment.

      @PediatricInc

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