Why some private Medical Practices fail – Part 4

So important is it to know why many others before you have failed and so extensive is the subject of why many start-up and even established Private Medical Practices fail, that we have embarked on a full series of articles that deal with this.

The statistics on the failure of new businesses are alarming and Medical Practices are subject to the same failures that any other businesses experience – and possibly a few more! It is not a series just about failure though and we hope we have given some solid advice on how to avoid the potential pitfalls that may lie ahead.
Just to re-cap, for those who may have missed previous articles, part 1 spoke about being prepared for failure, the importance of starting out right with a good business plan and ensuring good, thorough and appropriate financial management.

In Part 2 we advised on the importance of being positioned well, knowing your own strengths and weaknesses from a marketing point of view and solutions for the poor handling of ‘day to day’ finances.

Part 3 advised on the importance of choosing the right partners and understanding that real profit is only when growth can occur. Here are a few more reasons why some private Medical Practices fail…

Poor leadership qualities

Leadership is such a critical thing in any business that, frankly, if you are not given to leadership skills it is better that you take a course on it or try to appoint a person who can take the reins.

The important decisions that need to be taken on a day to day basis are all part of leadership and when even just a few people or partners are involved they need to look to one strong leader to guide the business to its intended goals.

Poor Management of your people

Following closely on the point of leadership, is the effective management of people in even a smallish organisation. In a large practice it is absolutely vital! Communication and leadership are inextricably linked and poor people management often comes down to poor communication.

It is also often a result of micro-management. Remember you hired your people, or chose your partners, because you believed in their capabilities – so allow them to get on with their jobs without you looking over their shoulder all the time!

Insufficient focus on the real business

Following on from that – if your attention is constantly diverted with the day to day running of the business you may well not be focussing on the real business of making people well!

Particularly in the area of finance – and especially in Medical Practice where the financial billing systems and liaison with medical aids can be complicated and exhaustive – you would be well advised to allow MFI who offer a specialist Medical Practice Management service that allows you to get on with focussing on your patient’s wellness while we focus on your financial wellness!

We hope this series on why some private Medical Practices fail… has been enlightening and useful to start-up practices and to those who simply may need to get back on track. Watch out for more in future articles.

In the meantime, why not contact us to find out more about our excellent services and how you can become one of the more than 100 medical practitioners who already enjoy the state of the art technology that enables us to process medical aid claims in excess of R200 million a year!