The Overlooked Crisis Facing Independent Healthcare Providers

For decades, the dream of owning one's own independent healthcare practice has been a driving force for many physicians and providers. Being your own boss, crafting an exceptional patient experience, and building an entrepreneurial legacy - what could be more rewarding?

However, a harsh reality has begun settling in for these enterprising medical professionals. A new research study reveals independent practice owners are facing a perfect storm of challenges that threaten to extinguish that noble dream.

The Declining Sphere of Physician Ownership

Data shows the landscape of physician practice ownership is steadily shifting away from the independent model. Over the last decade, the rate of physicians owning their practices has plummeted 13%, from 60.1% to just 46.7%. 

Even more concerning, the pipeline of new owner-physicians is drying up. In 2012, 44.3% of doctors under 45 were practice owners. By 2022, that figure dropped to 31.7% as younger generations eschew the risks and responsibilities of entrepreneurial ownership.

As tenured physician-owners retire, they are largely being replaced by employed providers at hospitals and health systems rather than a new breed of plucky practice entrepreneurs.

The Struggles of Bridging Clinical and Business Excellence

For the remaining independent practice owners, their experience is often one of drowning in overwhelming currents of duties. 

Our qualitative research uncovered eye-opening realities, including:

• Administrative burdens consuming 10-35% of their time - a largely unnecessarily high ratio

• Constant tension between delivering patient care and managing operations/strategy

• Little bandwidth to properly plan, innovate and lead their businesses with entrepreneurial zeal

• Lack of formal business training for everything from financial management, to leadership, to marketing

Perhaps most concerning was that 80% of the practice owners we surveyed expressed a desire for more for strategic planning, professional development and even personal pursuits. Many feel trapped in bare-minimum survival mode rather than thriving, duplicatable, sustainable growth. 

The Head-in-Hands Moments of Entrepreneurial Isolation

At the core of these challenges is the fact that independent practice owners straddle two vastly different worlds - the clinical realm where they are experts, and the entrepreneurial business operations side where most lack proper training and support.

Wearing the hats of medical professional and business leader can quickly become overwhelming, and medical curricula don't adequately prepare providers for financial management, growth strategies, personnel leadership, delegation mastery and so many other crucial entrepreneurial skillsets.

This acute business acumen gap means providers are left to find their own way through trial-and-error. Our research found a distinct lack of targeted research and resources tailored to the provider-owner. We jokingly call our clients the “red-headed step children” of the healthcare world. Sadly, this lack of targeted research and support perpetuates a vicious cycle of operational inefficiencies, financial instability and higher burnout risks.

Tracy Cherpeski International Deep-Dive White Paper: The Path Illuminated

Thankfully, all is not lost for the spirited medical entrepreneur. Our groundbreaking new white paper "Unlocking the Potential of Healthcare Practices: A Business Blueprint for Practice Owners" shines a light on the path forward.

Through comprehensive analysis, proven strategies, and tangible solutions, the white paper equips independent practice owners to harmonize clinical and business leadership. 

Practice owners will discover how to:

• Get access to specialized training to bridge the business skills gap

• Leverage powerful peer communities for insights and support

• Learn strategies for intelligently implementing tech solutions and outsourced services  

• Uncover pathways to unlocking new revenue streams without overextending

• Gain insights on developing leadership abilities like personnel management

• Ultimately find the elusive work-life balance and reignite their passion

The white paper's insights are a wake-up call for practice owners - but also a rallying cry to embrace their identity as entrepreneurial leaders in healthcare's new frontier.

By downloading this vital resource, provider-owners can take the first step in reclaiming their idealized vision: A thriving, sustainable practice that seamlessly fuses exceptional patient care with prosperous entrepreneurship and enriched quality of life.

The future of independent practice healthcare will be built by those who lead the way. Download the white paper today to secure your legacy.

If this blog post resonated with you and the struggles independent practice owners face, don't go it alone. Schedule a complimentary strategy call with Tracy Cherpeski, our founder and an expert business consultant & executive coach for healthcare providers.

On this call, Tracy will dig into the unique challenges holding your practice back and map out tailored solutions. Together, you'll start developing a plan to reclaim your time, streamline operations, build your entrepreneurial leadership skills, and unlock sustainable business growth. Capitalize on this opportunity to partner with Tracy and make the first move toward becoming an unstoppable medical entrepreneur.

3 Ways to Increase Staff Retention in Your Healthcare Business

“Good help is hard to find.”  

“The labor market is terrible.”

“I’m worried we’ll never find good people.” 

“This generation doesn’t value hard work.”

I often hear this early-on from my clients. 

The medical and dental field is fast-paced, and being the practice leader requires a lot of you, maybe even some kind of “super human” capabilities, which I hope you know is an unrealistic expectation. 

The solution is simple, but not necessarily easy, and will require you to gain clarity, learn to let go of some control, and trust that when you step into your CEO shoes, you will get the results you desire.

With turnover rates high, 26% in healthcare in 2022, you’re challenged with hiring well, training, providing sufficient support to your team, and creating a healthy workplace. You also have the pleasure of being the team lead, even if your practice manager is in charge of hiring, firing and training.

Some of the primary reasons for turnover are: 

• Staff is overworked 

• Work environment is stressful

• Lack of decision-making power

• Lack of recognition and direction from the top

I’m going to focus on the last reason, lack of recognition and direction from the top. I assure that you all are important, though in my experience in my 12 years of coaching and consulting clients, focusing on one area can often be supportive in addressing other sticky areas in need of attention. 

Here are 3 ways to increase employee retention:

1. Get clear about what you want for your practice. Look at the big picture and all the details. If my clients haven’t done this yet, we spend a day together in a VIP intensive to comb over the details, operational flows, wish lists and goals. With this clarity, we’re able to start working on updating, or in some cases, writing drafts of the operations and training manuals (what I lovingly refer to as the “office bibles”). 

   Once we’ve done this, we start to plan how they’ll communicate their mission, vision and expectations. 

2. Communicate your vision with your team. When I was a manager in a luxury health club, every employee was expected to know the company mission and values statements, and we were informed that we could be visited by secret shoppers at any time, so we needed to be ready to recite them. We were taught to embody, practice and consistently demonstrate the company values. As a result, our clients were genuinely happy, and the staff turnover at the location where I worked was low compared with the rest of the industry. 

   As employees, we knew what was expected of us and how to do our jobs. Job descriptions and company policies and procedures were crystal clear. As a new hire, I spent three days in their corporate headquarters in hands-on training, and was offered unlimited and unchallenged support for any questions or uncertainties that might arise. In short, I knew exactly what they wanted from me in my role, and how to meet and exceed their expectations.

3. Follow up like the wellbeing of your practice and team depend on it, because they do. Keep the lines of communication open. Trust but verify. Make sure your employees are empowered and sufficiently supported to do their jobs. Let go of control as much as possible, AND, check in with them regularly.

   I recommend that you bookend each day with a morning huddle and an evening debrief. These should last no longer than 10 minutes each, and ideally you ask questions and listen while your practice manager documents the details. You will follow-up in your weekly manager meeting. If there is a need for more staff follow-up, your practice manager can handle that.
   

One of my clients is a provider and owner of a practice with 10 providers, 10 technologists and 5 administrative professionals in two offices; the providers and practice manager work remotely. The practice more than doubled in patient demand, number of providers and technologists over a two year period. By any standard, this is huge growth in a short period of time. When we started working together, the turnover at the practice was well below industry average, at less than 10% turnover for several years. However, morale was dipping and frustrations were mounting.

My client was concerned about how this would impact the practice overall, and wanted to get a handle on it. I conducted several interviews with their team at all levels and length of tenure. I learned that every person who worked at the practice held the owner in the highest regard, and they all expressed they felt they were lacking direction, and some of the administrative team felt underappreciated and overworked.

I reviewed the interview results with my client and their practice manager, and before we set to work writing operations and training manuals, we got back to basics. 

We re-visited the practice mission and values, and put those in writing. Then, in collaboration with department heads, they updated their manuals. Once they had good working drafts (I recommend that these are living documents, to be adjusted incrementally over time), we planned implementation. They started having shorter, more frequent meetings for each department, and full-practice meetings. After a few months, my client told me it seemed like everyone had breathed a sigh of relief. The practice continues to be incredibly busy, and yet morale is at an all-time high. They have had zero turnover in the last year. 

Notice that morale is at an all-time high, and they didn’t put ping pong tables or snacks in the break rooms or go on fancy trips. They got clear about their mission and expectations, communicated them clearly with the team, and implemented a system for followup and quick resolution for issues that arise.

If you want to have a happy, engaged team, you don’t have to get fancy or complicated. Get clear. Communicate. Follow-up. Rinse, repeat.

If you would like support in improving morale and retention, schedule a complimentary Practice Assessment Strategy session. We help our clients navigate the challenges of being a provider-owner by taking back their time and finding the right strategy to grow their practice without burning out. 

We’d be honored to explore what’s possible for you and your team. 

Why Time Management Doesn't Work, and What You Can Do About It

Photo by Nick Morrison on Unsplash

Time is the one thing all humans have same amount of each day, unlike money, energy and abilities. I’ve yet to have any clients who use their allotted time the exact same way, but what I’ve witnessed over the years is something my happiest clients have in common, and it’s not how they “manage” their time. It’s how they lead their time.

Does any of this sound familiar to you?

You’re successful, AND you feel trapped by your success.

You feel like you never have enough time. You’re wearing multiple hats as the business owner, chief strategist, team leader, fire-putter-outer, and all-around “it” person in your business. You have a team, and they’re great, yet, you still find yourself doing so many things that monopolize your time and zap your energy. 

You wonder if you made a mistake unplugging from the system you left behind, because maybe after all, it would be easier to go back to working for someone else. You may even be wondering if you’re cut-out to achieve the success and freedom you crave.

You are not alone. Many business owners tell us a version of your story when they come to us: 

• They’re overworked.

• They’ve become disillusioned with being in business for themselves and are considering going back to work for a different organization (the VERY THING they left due to burnout and other frustrations!)

• They’re not experiencing the time and financial freedom they envisioned when they started their business.

Will it get better? Yes!

Imagine if you could gain control of your schedule. Picture working only on tasks that are directly related to strategic business priorities and providing excellent customer care. 

What would you accomplish if you were able to block time for research, writing and publishing; speaking and teaching; and advancing your status as an expert in your area of speciality? 

How about the practical stuff? Eat lunch every day. Leave on time every day.  

Envision your team as happy, proactive, engaged and committed to your values and vision. They’re looking for ways to support growing your business and serving more clients or customers with the highest level of attention and care. They understand the value of your time, and they appreciate your commitment to honoring their time as well as your own.  

You may have been wondering how it’s possible to create this kind of utopia, especially if you currently feel like your business could swallow you whole at any given moment. 

Fear not. With some analysis and adjustments to how you structure your time, your mindset about what’s required of you to run a successful business, and how you view time itself, you can make this beautiful picture a reality. 

Start with understanding the importance of the three pillars of Time Leadership: 

1. Discovery

2. Analysis

3. Action

In the first pillar, Discovery, you examine what is most important to you. Do not skip this step. Write it all down. What are your values? What do you really want? Is it time with your family, leisure time, start another business, pursue a hobby, travel the world? Get really clear about what you want for your business and for your life. Write it all down until you have no answers left to the question: What do you really want?

Next pillar, Analysis, is where you comb over how you use your time. Write down every single task, meeting, water cooler chat and everything in-between. Now assign a monetary value to every half hour block of time. This is tedious, but it’s also eye-opening. How much money are you costing your business doing tasks better suited to others on your team? 

If you’re slightly horrified, good. Then you’re ready to take action.

The third pillar, Action, is where a lot of business owners and entrepreneurs want to start, but without clarity, will run in circles, exhausting themselves and costing their businesses dearly. I always recommend my clients start with one or two areas to take action for a while. Don’t flip your business model or your calendar on its head. You’ll regret that. Focus on 1-2 actionable items that are relatively easy or simple to implement. Once you’ve gained momentum, you can work on more changes.

This is just the surface of Time Leadership, but once you start here, you can start to get a feel for how to think and act as the leader of your time and of your organization. 

Time Management implies controlling and getting as much done as possible, whereas Time Leadership is about guiding your attention and focus to the things that are most important.

If you’ve found that time management tactics aren’t working, then it’s time to go back to the drawing board, get clear, craft your strategy, and THEN implement your tactics. Remember that tactics without strategy will not get you where you want to be. Strategy without tactics, ditto. But start with a clear strategy and simple tactics, and you’ll build momentum. Momentum is your friend, so long as you’re taking inspired action and know the direction you want to head.

Think about jump starting a stick shift car. If you’ve ever done this, you know what I’m about to tell you. The key to getting the engine started is momentum. The biggest hurdle is to get the car moving. The first few steps are a total bugbear, but then you’re moving. Once the car starts to move, you can walk faster and eventually start running. Once you’re running, you jump in, put the car in gear and drop the clutch. The car will magically start. Entrepreneurship is kind of like this. Slowing down in order to speed up, and deciding to start thinking like the leader you are, by prioritizing and assigning monetary value to your TIME will help move you in the right direction, and will alleviate a whole lot of the overwhelm and stress of running a business. 

Let’s review and remember the 3 pillars of Time Leadership:
Discovery - what do you really want?

Analysis - how much is your time worth, how much do you cost your business, and how much are you leaving on the table performing tasks better suited to your team or outsourced?

(Inspired) Action - What’s the next best step? What is one thing I can get done right now that has high value and contributes positively to the bottom line?

Remember that time management without a strategy, meaning clarity and vision, is like getting in your car without putting a destination into your chosen map or GPS. Going for a random drive is cute, but if you really want to get somewhere in a certain amount of time, you’d best provide those inputs. 

Time leadership is about directing your time and energy to the important tasks that help you grow your business and make money. Contrary to what many business owners think, not everything is a fire to be put out immediately. Being clear about what’s most important will save you time, money and effort, which will enhance your fulfillment and impact. 

That’s all I’ve got for you today. Make sure to take notes, and please do take a moment to write a review and share this podcast with fellow entrepreneurs so they can also learn with us. Entrepreneurship can feel like an isolated island, so the more we can come together, the more supported we feel.

I’d like to leave you with a quote:

Time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent. Be careful lest you let other people spend it for you.     

 - Carl Sandburg

If you are a physician or practitioner practice owner, schedule your complimentary strategy session to learn how to take back your time and energy while growing and scaling your practice.