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Five rules in tough times: Pinto's Development Doctrine
Although most eye surgeons are hunkering down, waiting out the recession, this is also a time when the most aggressive practice owners and managers are moving ahead with their development plans while everyone else is hiding in their bunkers. If you are in the more venturesome minority, here are five determinants that provide a useful screen for new practice initiatives. When you come up with an idea, ask yourself if it would pass this five-point test:
1. Have you assessed and prepared for the cash flow consequences of the proposed business initiative?
2. If you are making your practice larger or more diverse, will you be ready to manage the resulting complexities?
3. Will your new practice initiative, within an acceptable timeframe, improve the standard of care, increase practice security and give the owners a pay raise? (Ideally all three.)
4. Will the initiative align the incentives for all of the stakeholders in your practice? (Patients. Payers. Staff. Providers.)
5. Have you remembered that health care is a local business? Or are you overextending to distant operations or off-beat services before you have the needed capital and proven operational competence?