The current staffing shortage has presented a challenge for many medical practices all over the nation. And the shortage has had a dizzying effect on the bottom line thanks to rising labor costs. With a smaller pool of qualified candidates to hire, the ones who are qualified are demanding higher and higher wages. This means doctors – especially those who run a private practice – must find strategies to offset rising labor costs to help preserve the bottom line. These are some ideas for accomplishing just that.
Offset rising labor costs through more production
One way doctors can offset rising labor costs is by increasing production while improving employee efficiency. Here are several strategies to achieve this:
Don’t Waste Downtime: Encourage your employees to use their downtime to contact inactive patients and invite them back to the practice. They can also call patients who have visited but have not yet accepted previously discussed treatment plans.
Cross-Train Employees: Cross-training employees ensures that you can meet peak patient demand without having to hire additional staff. This flexibility allows for smoother operations and increased productivity.
Encourage Patient Referrals: Instruct your staff to routinely ask patients for referrals, which can help boost new patient flow and expand your practice.
Optimize Hygiene Appointments: If your practice includes things such as dental hygiene, make sure your schedule is extremely efficient. By being almost obsessive about how you schedule appointments, your office can create more efficiency that allows you to complete work with fewer employees.
Use marketing to offset rising labor costs
In addition to enhancing productivity, doctors can also focus on marketing strategies to offset rising labor costs. Here are a few ideas:
Video Testimonials and Google Reviews: Engage your employees in producing video testimonials from satisfied patients, parents, and referring doctors. These testimonials, along with favorable Google reviews, can significantly contribute to increased new patient flow and practice growth.
Social Media Posts: Another great option for employees who have downtime is to have them allocate specific segments of the day to posting on your practice’s website. There are all sorts of things they can do while working through your social media pages. They can respond to other posts, simply share a picture from the office, or link to important articles about your specific practice of medicine. Staying active on social media is a great way to remind former and potential patients that your practice is vibrant.
Get in the weeds
Review Your Expenses: It sounds mundane, but the longer you’ve been in practice, the more likely it is that there are expenses you pay that may not be needed anymore. When you’re trying to offset rising labor costs, one of the best ways may be to spend an afternoon analyzing every expense coming out of your practice.
Increase Fees: Inform your employees about the need to raise fees to cover higher labor, supply, and laboratory costs. Seek their support in implementing these fee adjustments effectively.
Doctors can implement various strategies to offset rising labor costs in their practices. By improving productivity and efficiency, maximizing marketing efforts, and carefully evaluating fee structures and insurance plans, medical professionals can successfully soften the impact of labor cost increases on their profit margins.
