From the November 2018 issue of HealthCare Business News magazine
• Strong Management Team:
Management bench strength is absolutely the core and it sums up the key element of what drives business value: leadership emphasizing strategic elements founded on true fundamentals. Investors and buyers are looking for a “backable” management team that can lead it to the next level.
• Strategic Plan:
Critical to being perceived as a platform is having a solid five-year business plan that lays out the growth objectives for the practice. What is the vision for the organization? What does the company need to make it stronger and more competitive in the marketplace?
Obviously, there is great deal of time and investment involved in creating a true platform. Reviewing a practice's strengths and weaknesses can be a way to determine where investments need to be made or which long-term goals the practice will need outside help to achieve.
While most physician practices typically don’t invest heavily in marketing, they should not take for granted that today’s referrals will continue to exist tomorrow. As hospitals are acquired, managed care companies consolidate and patients begin to take a greater role in their own care decisions, physician groups need to invest in the value of their brand through marketing and messaging. This will allow all stakeholders in the market to understand the many benefits and service offerings the physician group provides, compared to other market players.
As physicians focus on messaging and relationships throughout the community, placing a priority on relationships with referring physicians is one aspect of the practice potential investors, buyers and partners look for. Stronger relationships with referring physicians equates to more referrals and more business. By fostering relationships with referring physicians, specialty physicians can create deep relationships and become more involved in patient care. Investors, buyers and partners like to see solid relationships where more business opportunities are possible in both the near and distant future.
Successful platforms also stand out amongst the competition by investing in technology. Although this can be a costly investment, technology can be leveraged to increase physician productivity and also potentially drive incremental revenue. Many physicians, including radiologists, can benefit from technology designed to reduce administrative functions and improve revenue capture from more efficient revenue cycle processes. This type of investment provides a more seamless work flow and allows physicians to devote more time to clinical and patient care.