Certain Uncertainty

The national debate continues on the topic of universal health insurance or some variation of it. It remains uncertain what the outcome will be precisely, but a few things appear nearly certain - demand for and utilization of services can be expected to to increase as the baby boomers move toward retirement and age related functional impairments set it, and reimbursement will continue to erode.


I also suspect the PT labor shortage is likely to continue. It will be driven by the reality of the financial gap associated with 7 years of expense for a DPT and constrained clinical earning potential. The need for business savvy as well and clinical expertise will become ever more appearent.


These factors set up a scenario where reimbursement erosion coupled with labor expense escalation will put increasing pressure on practice profitability and thus viability. In such a scenario some practices will do reasonably well, others will not. The 50% of practices that currently operate at or below average profitability will suffer - not all will survive. Most of those practices don't realize what they are missing or what they are risking. Most do recognize however that they are working harder, worrying more, getting less reward, and finding frustration in the process.


Practice change is eminent. It's coming fast and its undeniable. The only uncertainty is how individual practices will respond. The future will not be fixed by national associations. The future will be determined one owner and one practice at at time. Its time to be proactive - time to get one's practice in order - strategically, operationally, and financially. The clock is ticking. Playing catchup is a loosing strategy as is compacency and denial. There are no special considerations for those who are not paying attention to what is going on around them. Ignoring reality is a fatal decision for practice owners and those they employ and serve.


Do you have your priorities in place? Do you have a plan? Are you working that plan? Is it working?


Have you guaranteed your practices profitability and viability in times of uncertainty? Do you know where to start? If you do get started. If you don't get help. These are urgent times.


Bob


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Performance Builders