The Revenue Trap: Why More Patients Doesn't Always Mean More Profit – A Special Snack Episode, EP 227
The Revenue Trap: Why More Patients Doesn't Always Mean More Profit – A Special Snack Episode, EP 227
Are you seeing more patients, working longer hours, maybe even adding providers or expanding your services—yet somehow your bank account doesn't reflect all that effort? You're not alone, and you're not doing anything wrong. You might just be caught in what we call the revenue trap.
In this unscripted SNACK episode, Miranda Dorta sits down with Tracy to explore one of the most counterintuitive challenges in healthcare practice management: why growing your practice revenue doesn'tautomatically mean growing your profit or your freedom. Many independent practice owners find themselves busier than ever, but when they look at what they're actually taking home, the numbers tell a different story.
Tracy unpacks the critical difference between revenue and profit, shares real examples of where growth can backfire, and offers practical guidance on how to evaluate whether expansion actually serves your goals—or just makes you busier.
Key Takeaways
Growth starts with definition - Before pursuing any expansion, get crystal clear on what "growth" actually means to you and why it matters
More patients ≠ more profit - Increased patient volume brings increased administrative burden, higher costs, and systems that may not scale efficiently
Systems must be audit-ready - Small inefficiencies that seem minor at low volume become expensive leaks at scale (like one client's text reminder glitch costing thousands monthly)
The time-for-money ceiling - Solo practices that rely entirely on the owner's clinical time will eventually max out, requiring strategic decisions about additional revenue streams or automated systems
Expansion requires duplication readiness - Before opening a second location, ensure your operations manuals are comprehensive enough that a completely new team could implement them
Common Questions About Practice Profitability
Why doesn't seeing more patients always increase my profit?
When patient volume increases, so do your costs—more administrative work, potentially more staff, increased overhead, and greater burden on existing systems. Without efficient systems in place, the additional revenue gets eaten up by the additional expenses and administrative creep that comes with growth.
How do I know if I'm ready to add another provider or open a second location?
Start by auditing your current systems before talking to realtors or making expansion plans. Can your operations manuals be picked up and implemented by a completely new team? Are your existing systems running smoothly enough to be duplicated? Consider working with a fractional CFO to evaluate financial feasibility before committing to expansion.
What should I look at first if I'm stuck in a revenue trap?
Ask yourself: Are you trading all of your time for dollars? Does your practice rely almost entirely on your personal clinical labor? If yes, it's time to reevaluate. Consider whether you want to bring in other providers, add complementary revenue streams (like health coaching for primary care practices), or invest in automation for repetitive administrative tasks.
What's the difference between growing revenue and growing profit?
Revenue is the total amount coming into your practice. Profit is what's left after all expenses. You can grow revenue significantly while actually losing profit if your costs grow faster than your income—especially if systems aren't efficient, you're missing billing opportunities, or small operational leaks go unnoticed because everyone is too busy to look closely at the numbers.
Episode Highlights
The critical first question to ask when someone says they want to "grow" their practice
Real client example: How a simple system glitch with text reminders cost thousands per month
Why being "too busy" to look at your books is a red flag for profit leakage
The importance of the "10,000-foot view" before diving into tactical growth strategies
What makes healthcare practice owners particularly vulnerable to the revenue trap
When staying the same size and optimizing what you have is the more empowered choice
How to evaluate if expansion will improve your business or just make you busier
Why your operations manuals need to be comprehensive enough for a completely new team
The role of automation and AI in breaking the time-for-money cycle
Understanding the difference between strategic finance and basic bookkeeping
Memorable Quotes
"What does growth mean to you? Because it's different for everybody. Just like success is different for everybody." - Tracy on the essential starting point for any expansion conversation
"At 10,000 feet, all the issues are handled. So now you kind of pop into the land of possibility. And then you come back down to earth because we don't get a lot done from 10,000 feet." - Tracy on strategic thinking before tactical execution
"A lot of times what happens with growth and scale is that the systems you have in place cannot handle the scale. And sometimes you don't know until you get it there." - Tracy on why pre-expansion audits matter
"It's a very slippery slope once things start getting busy... that is really the Achilles heel of any business owner, but especially physician owners, because you're really doing double, sometimes triple duty." - Tracy on the unique challenges healthcare practice owners face
"I think it's a super empowered choice to say, 'Yeah, I don't want to be multiple providers. I'm really happy with the way I do things here.'" - Tracy on why choosing not to expand can be strategic, not settling
Closing
The revenue trap is real, and escaping it starts with asking the right questions. Before you add that next provider, open that second location, or commit to seeing even more patients, take time to define what growth actually means to you. Audit your systems, understand your numbers, and make sure expansion serves your goals—not just your ego or someone else's definition of success.
If you're realizing you might be caught in the revenue trap right now, start by examining whether your practice relies too heavily on trading your time for dollars. From there, you can make strategic decisions about additional revenue streams, automation, or whether optimizing your current size is actually the smartest move.
Ready to evaluate your practice's profitability and growth strategy? Schedule a consultation with Tracy at thrivingpracticecommunity.com.
Is your practice growth-ready? See Where Your Practice Stands: Take our Practice Growth Readiness Assessment
Miranda’s Bio:
Miranda Dorta, B.F.A. (she/her/hers) is the Manager of Operations and PR at Tracy Cherpeski International. A graduate of Savannah College of Art and Design with expertise in writing and creative storytelling, Miranda brings her skills in operations, public relations, and communication strategies to the Thriving Practice community. Based in the City of Oaks, she joined the team in 2021 and has been instrumental in streamlining operations while managing the company's public presence since 2022.
Tracy’s Bio:
Tracy Cherpeski, MBA, MA, CPSC (she/her/hers) is the Founder of Tracy Cherpeski International and Thriving Practice Community. As a Business Consultant and Executive Coach, Tracy helps healthcare practice owners scale their businesses without sacrificing wellbeing. Through strategic planning, leadership development, and mindset mastery, she empowers clients to reclaim their time and reach their potential. Tracy designs and delivers CME-accredited wellness retreats and workshops in partnership with medical associations, bringing burnout prevention and sustainable practice management to physicians nationwide. Based in Chapel Hill, NC, Tracy serves clients worldwide and is the Executive Producer and Host of the Thriving Practice podcast. Her guiding philosophy: Survival is not enough; life is meant to be celebrated.
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