Case Study One: Restoring Profitability

Description: Strategic Plan

Company: Six-million-dollar, multi-physician medical practice.

• Complementary specialties.
• Multiple locations.
• Revenues from insurance and fee for service.

Key Concerns: Rising operational costs

• Continuing decline in insurance reimbursement and uninsured patients were resulting in declining revenues with no end in sight.

Objective: MRP Profit Strategies was retained to work with the executive team and staff to develop a strategic plan and to make recommendations to address key business concerns.

Project: MRP conducted a complete:

• Core In-Depth Review, which included an extensive review of associates, physicians, referral sources, patients, organizational structure, business systems, and current services .
• Results/feedback session with physicians and staff
• Worked with the executive team and selected leadership team (representative of the staff) to build a long-term strategic plan complete with annual plans to move the practice quickly forward in a focused direction

Outcomes: Discovery:

• Uncontrolled growth had resulted in unprofitable locations.
• Operational inefficiencies as well as lack of proper systems and procedures for revenue control had contributed to continual declining revenues.
• As a result, physicians were experiencing increased stress and pressure to produce, staff felt disempowered, and patients were becoming increasingly dissatisfied with the overall practice.

Solution: Together with MRP:

• The organization was restructured to produce efficiencies and reduce staff and overall operational costs
• Systems and processes were designed and implemented to ensure proper billing and timely collections.
• A plan was designed and reviewed to increase growth in the areas of fee for service/cash-based patient services.
• All locations were reviewed for profitability and efficiency. Two locations were immediately closed and a model was developed for assessing locations before investing in the market.

Result:

• The medical practice regained profitable growth trends within the year.
• The medical practice expanded to include two new profitable locations and added two new physicians-all while maintaining a below industry average of operational costs.