pracTice managemenT | fInAnCIAlMAnAGEMEnT | incorporating them into the practice.
This is reflected by the positive growth seen in the number of practices that have a non-physician provider. In 2006, 22.5% of the practices in the Allergan database had a mid-level provider/nurse practitioner. In 2007, the number was 24.5% and that grew to 28% in 2008. The increase in the popularity of
mid-level providers has been caused by a number of factors, including that the demand for specialised care has outpaced the supply of physicians. Physician assistants and nurse practitioners have done a more than adequate job in helping practices to meet this demand. Another reason contributing to their
success is that they have been accepted by patients. This acceptance continues to grow as the patients are educated and gain understanding of the qualifications and capabilities of physician assistants and nurse practitioners. This is supported by the consistently high scores they have earned on patient quality of care surveys conducted over the last few years.
Net collected revenue per FTE aesthetician The median value for an aesthetician’s net collected revenue for 2008 was $132 281. This number reflects aesthetician services only. The median net collected revenue value for 2008 was $132 281, which was a 5.15% growth over 2007. The 2008 growth percentage outperformed the 2007 versus 2006 growth percentage of 3.09%. The median value for 2007 was $125 799, and $122 026 for 2006. The aesthetician median revenue rate per hour for 2008 was $64 per hour, which was an increase of 4.92% over 2007 at $61 per hour. There is often debate
concerning the value of offering aesthetician services in the cosmetic medical practice. The argument from physicians and managers is that the aestheticians are barely breaking even when they look at the profit and loss statement. However, it is important to include the aesthetician’s revenue generated from product sales. This is often approximately equal to the revenue generated from aesthetician
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services. furthermore, there is a value that is difficult to measure because of intangible factors. Aestheticians often offer gateway procedures that bring in new patients. If the practice has a conversion strategy in place, these new patients often convert to the higher valued services provided by the practice. Depending on the job description and office infrastructure, many aestheticians contribute to the front and back office, serving as back-up or patient educators.
The goal should be to create a habit
Retail product sales Retail product sales continue to be one of the biggest areas of opportunity for the cosmetic medical practice with regard to
revenue-earning
of reviewing the data on a monthly basis, which will enable the
practice to make small course corrections as needed.
opportunities. According to the 2009 market overview published by Kline & Company,
the total
cosmeceutical market volume for 2008 was $1 055 700 000. The market grew by 7.54% in 2008 over 2007. Medical care providers
generated 26.4% of this volume, which represents an 11.5% growth change from 2007. Spas and salons continue to hold the lead position in the market share at 50.7% or $535 700 000, but experienced the slowest growth over 2007 at 5.4%.
May 2011 |
prime-journal.com
Retail stores have the lowest volume at $240 800 000 and were in second place with a growth of 8% over 2007. The fact that medical care providers
hold only one quarter of the market share should be enough to motivate most practices to take action. To further emphasise this point, consider that the median retail sales volume per office in 2008 was $118 300. This was one of the largest growth areas in the database at 28.3% over 2007, which was $92 204. The 2007 growth over 2006 of $86597 was 11.47%. This growth trend leads to the conclusion that medical practices are beginning to recognise the opportunity this represents and are formulating strategies to better provide patients with high-quality skincare products.
Cosmetic medical practice benchmarks: expenses Similar to income categories, it is easier to measure internal performance because the data is already on hand and can be compared to data from previous years. Measuring against external data is more difficult because it is often harder to find. Inspecting the financial health of the
medical practice requires vigilance on the part of the physician and management team. The physician needs to have a working knowledge of the components
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