When it comes to growing your healthcare practice, there are two powerful strategies to consider: acquisition and retention. Understanding these can significantly enhance your practice’s trajectory. In the latest episode of Practice Growth HQ, we sit down with Joanna Oakey to explore these strategies and how they can shape the future of your practice
Growth by Acquisition
Acquisition involves purchasing other practices within the same field and integrating them into your own. This isn’t just a strategy for large corporations; small and medium-sized enterprises (SMEs) can also benefit immensely. It allows for rapid scaling and can quickly increase your market share.
Here’s why acquisition is so valuable:
1. Speed of Growth: Unlike organic growth that can take years, acquisitions can catapult your practice’s size and capabilities almost overnight.
2. Market Penetration: Acquiring a local competitor means immediate access to their customer base, effectively reducing the competition.
3. Economies of Scale: Larger practices can benefit from reduced costs per unit in operations, supplies, and marketing.
However, growth through acquisition isn’t for the faint-hearted. It requires careful consideration, particularly in healthcare where the practice’s quality and regulatory compliance are paramount.
Overcoming Barriers in Healthcare
Many healthcare practice owners are deeply rooted in technical skill sets. For instance, dentists, doctors, and allied health professionals spend years mastering their craft, which is crucial for quality care but can be a hurdle when shifting focus to business strategy.
It’s crucial to strike a balance between maintaining high-quality patient care and exploring how acquisitions can enrich your practice. This dual focus can set your healthcare practice apart from others that may be too fixated on either patient care or business mechanics alone.
Industry Insights: Veterinary Practices
Interestingly, veterinary practices often outperform other healthcare sectors when it comes to acquisition multiples. When these practices sell, they command higher profits compared to dental, medical, or allied health practices. This suggests there’s something unique about their business models worth analysing.
Expanding Your Perspective
To truly thrive, healthcare practice owners should not limit their learning to their own fields. For instance, if you run a dental practice, look at what veterinary practices or even different sectors like professional services are doing to grow. Broadening your scope of research can provide fresh and valuable insights into effective growth strategies.
Retention Strategies
Now let’s talk about retention, another crucial aspect for sustainable growth. Keeping your associates loyal and engaged is vital. Here are a few strategies:
1. Competitive Compensation: Ensure your associates feel valued by offering competitive salaries and benefits.
2. Professional Development: Invest in their growth. Continuous training and development opportunities can make your practice a desirable place to work.
3. Inclusive Culture: Build a work environment that fosters teamwork and mutual respect. Happy employees are less likely to leave.
Retention isn’t just about keeping your team from leaving; it’s about fostering a culture where everyone feels part of a journey toward collective growth and improvement.
In sum, whether through strategic acquisitions or robust retention strategies, there are numerous avenues to grow your healthcare practice. Explore beyond your immediate field, embrace wider industry practices, and always keep your focus on both high-quality patient care and smart business growth.
For more tips and expert advice on growing your healthcare practice, listen to the full podcast episode with Joanna Oakey:
Spotify: https://spoti.fi/42rpDPf
Apple Podcasts: https://apple.co/3EoZbKI