The Theory of Constraints: How Bottlenecks Can Suffocate The Growth Of Your Chiropractic Practice And What To Do About Them

Do you work hard but you just don’t get as far as you should?  The reason may be that you are running into unseen bottlenecks that are choking off your production and suffocating your growth.

Here is an example: One doctor we worked with a few years back had a small office of about 1000 square feet. He was seeing about 140 visits week but wanted to see more. He felt the problem was not enough promotions generating more new patients.

We visited his office and noticed that he already had a decent amount of marketing underway and he was getting external new patients. While his marketing could have been more effective, it wasn’t that bad.

We noticed that the reception area was tiny and mentioned this to the doctor and suggested he move to a larger office. He had his mind made up.  He did not want to get a larger office because he had heard of doctors seeing 300 O.V.’s per week in 1000 square feet with very low overhead and he wanted to do the same.

So we set up a special focus group and personally interviewed his patients. The primary complaint was that the reception area was too small. The patients interviewed said that during peak hours there was no room for them to sit. They said that they felt that he must be too busy and therefore they would not come in to see him because he was full, and that they referred their friends to other offices.

Well, with this information, the doctor finally decided to move into a new office with a larger reception room.  Shortly thereafter, his office visits shot up to an average of 225 per week.

There are a number of lessons to learn from this story. One being not having a fixed opinion of how things should be based upon hearsay, or what may work for one doctor may not work for you. But the biggest lesson has to do with capacity. And, there are many examples of capacity restraints that we often uncover in our consulting and coaching work over the years.

Bottlenecks can occur at the front desk, in the therapy area, and in the insurance department. They can occur with the patient flow, with paperwork or in doctor time.

The theory of capacity management, as expounded by Eli Goldratt and explained in his books, including the best selling The Goal, discusses the theory of capacity constraints as applied to a manufacturing environment.  The same principle applies to a health care facility.

According to Goldratt:“Capacity is the available time for production.” A bottleneck is:  “what happens if capacity is less than demand placed on resource.”

 

SOME CHIROPRACTIC EXAMPLES:

  • Peak Periods. Between the 4-6 pm slot, where there is extra traffic, additional staff or increased capacity is not always provided. If staff feel that patients are waiting too long, or that they are not able to handle all the traffic, they may unconsciously hope the phone does not ring or another patient walks in. In turn, should someone new call or walk in, the quality of service may be poor.
  • Paperwork.  Older forms may not meet the current needs, be redundant or even hard to read.
  • Poor scheduling of patients: (not cluster booked, not booking for NP or paperwork)
  • Doctors waiting for therapy patients. (No therapy staff or therapy after adjustment)
  • Front Desk doing insurance and scheduling at each visit (no multiple appointment plan or Prepayment plan)
  • Not enough exam rooms
  • Clutter in front desk/insurance area
  • Quitting time. After a long day, all staff and doctors are looking forward to leaving and really don’t want extra patients to call or come in.
  • Backlogs. Undone reports from two summers ago, partially completed projects, cluttered desks or office space, all discourage an increase in production. You only have so much mental capacity, and if it gets frittered away on projects that are not completed, you will have “too many irons in the fire” to add any more
  • Doctor talking too much. “Table talk” should be about chiropractic, the patient’s need for care, their progress, and referrals.  Now and then, a few questions about the patient’s personal life to demonstrate your genuine interest is good. Aside from that, there is no need to justify your services with lots of talking. Keep it moving.
  • “Difficult people”. Some staff, or patients, will seem to drain you of your energy, or consume too much of your time trying to keep them happy. This can “clog” up your day.
  • Doctor too busy doing administrative tasks and micro managing. This distracts him from the work that he needs to do.
  • Doctor’s mind “filled up” with lots of experience and no longer curious or interested in practice.

 

SIX CATEGORIES OF CAPACITY IN A CHIROPRACTIC OFFICE:   We can break practice capacity constraints into 6 categories.

  1. Physical. (For example, not enough rooms, rooms too small, or just too cluttered.)Doctor. (For example, doctor doing billing, answering phones, and micro managing. )
  2. Procedural. (E.G. making 4 copies of each EOB rather than making an electronic back up)
  3. Equipment. (For example, using hand feed copier rather than an automatic feeder.)
  4. Personnel. (Not enough staff, poorly trained staff, barely competent staff preventing you from hiring superior staff, and negative staff, etc.)
  5. Doctor. (For example, doctor doing billing, answering phones,  micro managing, head “filled” with “krap!” )

 

REMOVING PRACTICE CONSTRAINTS

Here are some steps to take to remove bottlenecks.

First, start by determining what is the maximum number of patients that could be seen by the doctor if all he or she did was adjust or treat them.  What is the doctor’s capacity in terms of visits? E.G. 250 visits per week – if all she did was adjust, do SOAPs, exams, and report of findings, with 6 New Patients and 5 returning or re-injured patients.

Then, look at what eats up the doctor’s time.  Then, consider the flow of patients, of paper, and anything that slows it down or gets in its way. Consider patients waiting, paperwork waiting, and any times of the day or days during the week where there is a slowdown or backlog.  Honestly check each category below.

Once you do this, have a staff meeting, explain the concept, and get responses from the staff.

  1. Doctor’s time: What does he do other than adjust patients? Can it be delegated? Can scheduling be improved so that the doctor never waits? Does she have any redundant tasks that can be made into a routine template?
  2. Procedures: Are there redundancies? Is something being done that could be done faster?
  3. Personnel: More training needed, more staff needed, better attitudes needed?
  4. Physical space: Do you need more space? Could things be arranged differently for greater efficiency?
  5. Equipment: Could a new piece of equipment speed things up? Does anything need fixing?

Once you have done this, give yourself 30 days to fix the biggest capacity constraint. Then, reassess. If the constraint is fixed and the flow is improved in that one area, it may have migrated to another area.

For example, a doctor was doing all of the x-rays which took extra time and she was also waiting for patients because they were not “cluster” booked. Solution: staff did all the x-ray work and the doctor just came in, checked, and “pushed the button.” The front desk booked the patients tightly so that the doctor did not have gaps in her schedule. Visits increased by 40 per week, from 160 to 200 for the week because now there was more “room.”

However, now that this was fixed, the bottle neck may “migrated” to another part of the office.  Now, the insurance department can’t keep up with the extra work and a backlog starts to build up in this area.   If this does not get fixed, then the insurance department’s traffic will slow down,  like a traffic jam,  and the office visits will eventually go back down to 160 per week.

 

When your business is not expanding like you feel it should, you may have bottlenecks or hidden logjams choking and stunting your growth. Fixing these and opening up the flow, even at extra cost, will usually greatly increase production and income and be worth it.

If it doesn’t get fixed soon, give us a call.

Sometime

(copyright Petty Michel & Associates 8/27, 2007. Revised 2012. CHMS, Inc.)

A Short History of How Everything Else Has Cost You Hundreds of Thousands of Dollars and (nearly) Killed Your Dreams as a Chiropractor

When you started your chiropractic practice, you took on 2 roles: “Doctor” and “Everything Else.” As your practice grew, you became busier in your role of doctor. That is what you wanted. That was good.

But as your practice grew, your role of “Everything Else” also got busier. This was a distraction from your role of doctor, so you delegated front desk, billing and therapy duties. You still kept the role of “Everything Else.”

As your practice continued to grow with more staff – your role of “Everything Else” expanded geometrically.  This concerned you.

You didn’t think about it much because you enjoyed being a chiropractor and loved your patients, but when you were very busy, you made more money. You could take a vacation with your family, put money aside for your kid’s education, and pay off debts.  Sometimes, you could see yourself producing even more, helping more people, and being even more prosperous.

These dreams didn’t last long. Your role of “Everything Else” became more demanding.  There were more “everything else’s” crying for attention.  There was too much to do and soon you saw your patient volume dropping. Patients were dropping out of care and new patients became scarce. You had lost control.

Other doctors who were experiencing lowered income blamed insurance companies. Or the economy. Or the modern culture.  All you knew was that it wasn’t fun anymore and there was just too much work to do. Work that wasn’t chiropractic.

The fact is, you were never too sure of this role of “Everything Else” and never really liked it all that much. You didn’t have any training in it like you did as a doctor.  And when all of the “everything else’s” starting coming at you, you felt like things were getting beyond your command.

You experienced some staff turnover and now with patient volume down, you didn’t need as many staff. Gradually there was less to do in your role of “Everything Else.”

This cycle may have occurred to you a few times: numbers up, then more stress, then back down. A roller coaster.

  MONTHLY OFFICE VISITS And here is where you may be now.

If you were to add up the amount of revenue you could have made had you stayed at your highest level, or been able to go even higher were it not for your role of “Everything Else”, you might be surprised how much this “Everything Else” role cost you. Hundreds of thousands of dollars.

= = = = = =  =

If this is your story so far, don’t go away. The last chapter hasn’t been written. In fact, your next one might be completely different. Here is an introduction to it:

You read about the chiropractic Executive Freedom Package and started it.

You discover that the “Everything Else” role is really the role of the business executive. It is the role of the CEO.

You realize that all major businesses have an executive and that there are certain skills and tools as a CEO to be learned. These skills have to do with leadership, management, and marketing.

So you learn these skills and get coached on them.  In time, you get better and better at applying them.

You find a staff member and give her the role of chiropractic office manager. You get her continuously trained and give her lots of your less important CEO duties. As she gets better, you give her more.

You get someone to help you coordinate all the marketing. You give him continuous training.

You have staff meetings and get the team on board with managing the office.

All the “everything else’s” are organized into systematized procedures and delegated to your team.

Numbers go up. Your team continues to improve. They are happy about this as they are sharing in the management of the office and its success. Now that all the “everything elses” are packaged up into nice neat systems, you have time to focus more on patient care, future planning,  personal studies, and other pursuits.

You are now a better leader, better manager, and a better marketer, and your business continues to grow. Your team is happier, more people are getting served, and you make more money.

If someone had only told you about the role “Everything Else” and what it really was all about years ago you would have avoided losing so much money and wasted time.

On the other hand, now that you know what the secret is, you are on your way out of the rut you have been in and on your way to greater freedom.

You can learn more about the “Everything Else” role and how to create the business structure that puts you in command with our new chiropractic business Freedom Package here.

 

Improving Team Performance and Developing Community Services for a Chiropractic Office

This month we cover a couple of import topics, both of which can bring you more income if managed correctly: Chiropractic Staff Performance and Community Relations Marketing.

TEAM PERFORMANCE

How well does your staff perform their duties?

Studies show that there are 3 primary methods to improve performance:

  • Deliberate Practice
  • Expert Coaching
  • Family and social support.

Natural talent is a factor, but is never enough by itself and is often overrated.

So, how well does each member of your team perform?  Are they experts? Are they ready to teach their own seminars?

And how about your how team? How well do all of you work as a team? Will they go to the Super Bowl or World Series this year?

Your office responds to training like any athletic team or musical group. If the scoreboard shows that the numbers aren’t where they should be, then individual performance or team performance is a likely reason why.

What is the fast and economical solution? Training. Coaching.  This is something you and your office manager, and each team member can learn.

Team training is not done by just one person; it is done by the team. One member helps the other member, and back and forth until both improve.

Our webinar this week covers just this topic.

 10 Tips on How to Be An Effective Team Trainer

Tools and Tips for Fast Team Training That Pay Off

Thursday, March 8th, 12:30 CT

Don’t miss it. Excellent for Clinic Owners (CEO’s) and Office Managers.

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 COMMUNITY SERVICES: External Marketing

We all live in caves.

We live in a cave house. Then we get into our cave car and drive to our cave office and stay in our cave rooms.

Meanwhile, there is a whole world out there with thousands of people that need your care, but don’t know it.  And the main thing you have to do is to just … SHOW UP and do something.

What’s so hard about that?

You all have done screenings and you all have done some kind of external events: workshops, school presentations, visiting medical offices. The hard part is not the presentation. The most difficult (and it is not difficult) is getting these events scheduled.

Ideally, you should have your community services calendar scheduled with a few external events of one kind or another every month.

This is the subject of our next marketing webinar.

 Scheduling Effective External Events and Generating External Referrals

Learn how to schedule effective events in this short webinar.

Thursday, March 15th, 12:30 Central Time.

 

How to Register

For guests, you may register for all  of these webinars, plus full access to our extensive practice building library for one low introductory fee of $250/mo for all classes.

Guest Registration Form

For all active PMA clients register immediately for these classes at: Active Client Registration.  (Register for each webinar separately. You will automatically receive your special log-in access number where you can participate via computer, or by telephone only.)

If you’d like more information visit our website HERE, or contact Linda via email at Linda@pmaworks.com, or call her at: 888-762-8808

You can also download a calendar for upcoming webinars: LINK

Last Seminar/Next Seminar

We just finished our 10 classes in 1 day seminar in Minneapolis – our “10 in 1.”  From what I heard and saw, everyone had a great time. I know we did. And for my money, I think we had some of the best professionals in the country giving presentations – as well as attending!

Dave Michel at 3Goals Seminar in Minneapolis
Dave Michel at 3Goals Seminar in Minneapolis

In addition to great presentations by Phyllis Frase on chiropractic philosophy and procedures for staff, Dave Michel on insurance, and myself on marketing and practice building, we had two guest doctors.

Dr Tom Potisk at 3-goals Seminar in Minneapolis
Dr Tom Potisk at 3-goals Seminar in Minneapolis

One was Dr. Tom Potisk who went over how he maintained a joyful practice for 25 years in a multi-doctor setting with 2 associate doctors.

Dr. Shane Walker at 3-goals Seminar in Minneapolis
Dr. Shane Walker at 3-goals Seminar in Minneapolis

Then, as a special guest, we were pleased to have Dr. Shane Walker who is the president of the Federation of Straight Chiropractors. He lit the room up with passion, statistics, and purpose and reminded everyone about the power of chiropractic, as well as it’s importance in society today.

So, just a reminder:

Our Milwaukee seminar is coming up soon.

Dave, Phyllis, and myself all have new material covering C.A. training, insurance and reimbursement procedures, and marketing and practice building.  Our presentations are all based upon the work we do each week in offices across the country – and what we see working, and not working.

For our Milwaukee seminar, we are especially pleased to have two exceptional doctors giving presentations on Thursday, May 20th.  Both are highly qualified and successful doctors that set great examples for excellence in their practice, business, and life.

We will be sending info out on them soon, but you can find out more here.

Hope to see you all in Milwaukee.

Economic Factors

We all know or have heard that the number one reason that a patient drops out of care, based on surveys, is that they experienced an “attitude of indifference” on the part of the doctor or the staff.

Most offices nod knowingly and are assured that their office cares about the patients, that their staff show concern, that their doctors have the patient’s interest at heart.

But what is an “attitude of indifference?” How does it manifest in a clinic? What does it feel like to a patient?

A patient experiences an attitude of indifference when they feel they are the 38th visit on a 60 visit day. They experience an attitude of indifference when they feel like they are on visit 15 of a 36 visit treatment plan and that everything is the same as the last 13 visits.

They feel an attitude of indifference when the doctor says, during the ROF, that he will give them some home exercises, and then doesn’t. Or when the doctor instructs them to attend the spinal care class as an important part of the treatment plan and no one schedules them for it, or when the front desk says they will order a supplement for them and a month goes by without the order, or the doctor says she will do a re-exam and then keeps putting it off, or when the doctor is running 5-10 minutes behind each visit or worse, comes in late.

Normally, you may still get that patient to follow through. But put yourself in the patient’s shoes. They are feeling better, even feeling “healthy” now, they have a $30 copay twice a week, and they have just heard that the company their husband works for may be laying off some people.

90% of the population right now, according to USA Today, is worried about the economy. Many have been affected, and many more are concerned – they are uncertain. When will things get better? Are we heading down farther? Am I going to have any money left?

When people are uncertain, the decisions they make are either “no” or “maybe” (which isn’t a decision but a postponement). They don’t decide that now is a great time to spend more money. Not on cars, not on restaurants, not on healthcare.

Expressing an attitude of interest is an “every visit” manifestation. That patient’s visit is not the 38th of the day or the 15th in their treatment plan – it is a singular, unique moment in time that will never occur again. It is a one and only opportunity to make an impact and a difference in that patient’s life. When you talk to them about the weather (“gee, cold out today, isn’t it?”) or tell them a joke in the treatment room or bs about the Packers – and if that is ALL you do that visit, you are just more white noise in their life, just another piece of spam in their mental inbox.

You have to manage a patient’s care EVERY visit, you have to work to make a difference in that patient’s life EVERY visit. If you don’t, that is an attitude of indifference. There is no other way to put it.

There are four critical factors that go into growing during a recession. These are:

1)    Great customer service. During a recession, other businesses cut back on the front end. People want and need good customer service. They deserve it from your office.

2)    Excellent patient financial plans, well communicated. The first response in some clinics when times get tight is to tighten up your financial plans. “All patients have to pay their copay before they see the doctor. No copay, no visit.” Do this and watch your practice drop by 50% (actual case).

3)    Step up your marketing. Great customer service and flexible financial plans don’t mean anything if no one comes in. Marketing is a variable expense and one of the first areas businesses cut. There were over 650 auto makers in the US before the great depression. After, there were six. Clinics are closing, going out of business right now. You can pick up market share.

4)    Increase your patient education. Patients aren’t going to blindly come in “because you said so”. Educating patients on wellness, having a wellness report of findings, and a “can’t resist” wellness financial plan are keys to building your practice.

Following the 3-Goals principles, review the above four points. Implement them personally. Review them with your staff and see how they can implement them further. Review them again and refine them.

There has never been a better time to grow your practice.

Getting Away – Rule No. 9

Sometimes you got to get away.

It could be for an hour, fifteen minutes, a week, or more.  To be fully engaged in your chiropractic practice, studies have confirmed, you also have to fully disengage every now and then.

One of my favorite books on this is by Dr. Jim Loehr and Dr. Jack Groppel, The Power of Full Engagement.  Disengaging from work, and engaging in other activities, adds more power and insight when you return to it.

More than 80 years ago, this subject was discussed by B.J. Palmer, known as the Developer of Chiropractic, with insight and character. His advice is completely supported by modern research and is worth reading and applying today.

Rule No. 9 ( PDF version to download.)

(720 words; about a 4 minute read)