When people ask me about my Yale MBA and the value of it, I explain that I learned how to think about things, ask questions, and develop strategies to maximize the opportunities I have discovered or solve the problems that arise. I also learned a little bit about a lot of different areas so I know what to look for when hiring experts.
Hiring people who can do things better and faster than you is a very important concept you see across every Fortune 500 business. Just take a look around at all of the services people actually pay for that you, technically, could figure out to do yourself.
This concept doesn’t seem to apply in the independent physician’s practice. Highly accomplished doctors who are really good at figuring things out see business problems that they think they can also solve.
Does it make sense to pay someone to do what you can do yourself?
Hiring someone to do something for you will cost you more than $0.00, but the expense to your practice of you doing into yourself is far greater than $0.00.
How many well checks do you do in an hour? How many sick visits? Depending on your practice and the ratio of Medicaid to commercial insurance, your average reimbursement for a sick visit ranges from $36-90 and your average reimbursement for well checks is $79-120. So, if you do 2 well checks and 2 sick visits in an hour, you generate $230 - $420 per hour for your practice.
Therefore, doing it yourself costs you a minimum of $230 x the number of hours the project takes you and that is if you are 100% Medicaid and get money for nothing else besides your E&M codes. This hourly cost is significantly higher for practices that don’t accept Medicaid.
Who are you hiring that would be more than $230 per hour? No one. And if that wasn’t enough, here are other things to consider:
Professionals can likely do it a lot faster than you can. It may take someone 3-5 hours of work but the same project would take you 10-15 because you don’t do it all day every day.
Setting aside the time and actually completing the project may take you months to do. If the task is revenue-generating this means you are missing out on months of lost revenue as you try to find time to do it.
There is an additional uncalculated cost that comes in the form of lost time with you family, the value of more free time and less stress when you know someone else is helping take things off your to do list.
So, doctors, can you figure out how to solve your own business problems in your practice? More than likely, yes, but do you want to incur all of that cost to do so?