LAS VEGAS — O&P practitioners need to be ready to embrace change, according to a speaker here at the American Orthotic & Prosthetic Association National Assembly.
Despite the challenges facing O&P businesses today, “the future is incredibly bright,” Mike Mallaro, CPA, chief financial officer for VGM Group Inc., said during the Hammontree Lecture series.
Mallaro said a number of megatrends are affecting the health care industry, the first being change. He offered a number of recommendations for any business owner who wants to keep up with the constantly changing health care industry.
The first is to “get bigger” because incremental changes can result in additional revenue. O&P businesses also need to improve their operations.
“Health care operations are not very efficient,” Mallaro said. For example, he said, business owners need to consider the cost of personnel as a percentage of revenue. A good rule of thumb is 36%, he said.
“You have got to take a clear look at your business and where your costs are. In those cases where you need to make adjustments, you are going to have to make some tough decisions,” he said.
Another way O&P businesses can improve is to become more patient-centric. Most clinicians think they already are patient-centric, but Mallaro said the key is to focus on patient experience and patient convenience.
“Being more convenient to the patient is a huge driver of additional business in health care,” he said.
Keeping up with the megatrends is essential for the successful business owner, according to Mallaro.
“The world is going to change, our industry is going to change, health care is changing. If we refuse to change, we are going to be left behind … We have to really challenge ourselves to be open to change,” he said. — by Amanda Alexander
For more information:
Mallaro M. Build a stronger business: Megatrends impacting your O&P practice and what you need to do now to optimize your business. Presented at: American Orthotic & Prosthetic Association National Assembly; Sept. 4-7, 2014; Las Vegas.
Disclosure: Mallaro has no relevant financial disclosures.