Tuning up your administrator, tuning up your practice

What should you do if your administrator (let's call her Amy) understands very little about the practice financials but is great with human resource issues and marketing? Assuming you want Amy to stay, what can you do to help her bridge this skill gap?

First, it is wise to recognize that all administrators will have strengths and weaknesses in their skill set. And it is not uncommon that the needs of the practice change over time, either due to practice growth, challenging economics or even differing skill sets in the newly elected managing partner.

If Amy's strengths outweigh the opportunities for improving your business by replacing her, invest time and money to bring her up to speed.

To strengthen a manager's financial skill set, consider the following:

Accounting and financial management books written for medical practices
An accounting class for non-accountants
Spending 1 to 2 hours per month with the company accountant, reviewing actual documents
Finding an experienced administrator from a local non-competitive practice or from a non-local medical school buddy’s practice and swap expertise among administrators
Attending national eye meeting financial classes
Spending a few minutes each week, administrator and managing partner together, reviewing financial reports and practice benchmarks to fine-tune the goals and outcomes
Support from a consultant

The general rule of thumb is that it costs about one half-year’s salary to replace any lost staff member. If you have an $80,000 administrator and are thinking about dismissing her because of one narrow skill deficit, it may be more cost-effective to find the support she needs to be able to serve you well for many years into the future.