Not every profit center suits every practice. How do you decide what to add? Follow these steps from Practice Management Editor Mark Opperman, CVPM, president of VMC Inc. in Evergreen Colo., and Indianapolis.
Not every profit center suits every practice. How do you decide what to add? Follow these steps from Practice Management Editor Mark Opperman, CVPM, president of VMC Inc. in Evergreen Colo., and Indianapolis.
"Considering these issues, it's important to determine whether your new profit center will be worth the cost," says Opperman. "Take grooming, for example. To determine your projected revenue, assume you'll do five groomings a day at an average cost of $30, bringing in $150 of revenue. Then compare that to your total expenses. Also consider the additional business the service might bring into your medical practice."
Keep in mind, for some services the season makes a difference. "In slower times of the year, you might need to give your service a bit longer to catch on," he says.
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