Why some private Medical Practices fail – Part 5

This is the penultimate article on the reasons why some private medical practices fail. There will be one more in the series and we hope we will have covered at least some of the essential points by the end.

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! This 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.

We cannot do a full re-cap on previous articles, but for those who may have missed them they can be found on our website. In essence we have covered the main reasons for failure when starting up, like not having a good business plan and solid short and long term goals, as well as not being well positioned, or knowing who your target market is – and most importantly practicing poor financial management – one of the biggest reasons why some private Medical Practices fail…

We have offered some solutions to prevent these failures and in this article we look at a few things that involve company best practice in relation to that all important goal setting.

They have no vision or mission

The medical profession is a noble one and in this business, more than any other, it is important to have a vision of where you want your practice to be going both in the short, but more particularly in the long term. This is a journey, but a destination cannot be reached if it does not exist!

Your mission is what your practice hopes to achieve. Are you aiming at wellness as your first priority? – Or is it just about making money and buying the retirement yacht as soon as you can? Have a mission and – like your profession – make it a noble one!

They have no core values

A medical practice without the core values of honesty, integrity, transparency, accountability etc. should wonder if they are even in the right business! These and other vital aspects of the Hippocratic Oath should not be shallow promises, but core values practiced by every partner and staff member of the practice on a daily basis.

They don’t have accountability at the top

The leaders of any business need to establish and visibly practice these core values and the vision and mission of the business. Accountability needs to come from the top and the leader needs to encourage best practice, a good work ethic, transparency and open communication. Communication and leadership are inextricably linked, so as a leader you also need to develop excellent communication skills.

They don’t have accountable Accountants!

Many businesses have failed through hiring Accountants who are not accountable to the business. Correct reporting, transparency and communication with the business and all those core values we spoke about, need to be practiced by a reputable Accounting practice too.

An Accounting firm that specialises in Medical Practice Financial Management is in fact the best way to ensure that, as a medical practice you will achieve the best results with regard to all financial matters. MFI understands that your financial needs are more complex and specific, as good liaison and expertise with medical aids is also vitally important.

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!

We hope this series on why some private Medical Practices fail… has been enlightening to start-up practices and to those who simply may need to get back on track. Contact us to find out more about our excellent services and watch out for more advice in the next final article.