Recently, I blogged about the how concern for overhead can often be misplaced. Subsequently, I was interviewed by Physician Compensation Report for a longer article they developed on this topic. Their article was published in the July issue, and published online today on Physician Leaders. Randy Bauman, a physician practice consultant with Brentwood, TN-based Delta Healthcare, had a succinct observation: “It’s easy to obsess with overhead, because everyone understands overhead. Everyone knows how to balance a checkbook. Revenue is more complicated to understand; it’s extremely complex compared to just cutting costs.”
I sometimes wonder whether there is this image that to be a hard-nosed business person, one has to cut costs and lay off people. But is laying waste to the company a smart business decision, or simply an easy one–maybe the lazy leader method?
Picking up where Bauman left off –not only is revenue more complicated to understand, it’s more complicated to change. Specifically, growing revenue takes more thought and effort than simply firing people.
In Friday’s post, I’ll blog about some basic tactics a specialty practice can use to build relationships and referrals.