4 Biggest Mistakes Dermatologists Make in Monetizing Their Practices
Updated: Mar 25, 2020
Many dermatologists try to increase earnings by simply getting more patients into their exam rooms each day. However, this is a flawed strategy because you are limited by the number of exam rooms that your office holds, so increasing the number of patients you can see each day would mean that you need to spend less time with each one. This can easily backfire for obvious reasons.
So how do you increase revenue without sacrificing positive patient experiences or your own sanity? Start by learning from some of the most common mistakes dermatologists make when monetizing their practices:
Mistake #1: Not Creating a Budget
Without an organized and clearly-defined budget, it’s going to be difficult, if not impossible, to keep track of various expenses and revenues that are constantly coming and going. Start by outlining your projected expenses and revenues based on past and current figures to help you plan for the future. Next, consider your goals and expectations for your practice moving forward. If you’re going to need to hire additional staff in order to grow, take this into account now. Then, based on your estimated profits and expenses, determine your projected retained earnings for the year.
Mistake #2: Not Staying on Top of Regular Financial Reports
Having a budget is one thing, but sticking to it is an entirely different animal. Utilize monthly and quarterly financial reports to monitor your practice’s revenue stream and costs. Look for what seems to be working and areas of the budget that may need to be tweaked in order to meet the changing demands of your practice. While it’s okay to revise your budget, it’s not beneficial to completely forget about it.
Mistake #3: Not Maximizing Patient Experience and Outcomes
This goes back to the initial question: “How do I monetize my practice without decreasing time with my patients?” The idea here isn’t necessarily to maximize the number of patients walking through your door, but to optimize the quality of your time spent with each one. In fact, increasing the number of patients you’re squeezing into one day is likely going to increase wait times and therefore decrease patient satisfaction.
Instead, take advantage of tools like the Skin Type Solutions Questionnaire, which can be completed by your patients prior to their time with you. Then, based on the information about their Skin Type Scores (which will translate to one of the 16 Baumann Skin Types) you can recommend customized skincare and treatment options for their unique needs.
This way, you not only streamline consult times, but you also optimize the quality of the time you’re spending with each patient and enhance their experience and outcomes. By providing detailed information about their Baumann Skin Type (which is provided by Skin Type Solutions), you can help the patient understand the root causes of his or her skin concerns, and also offer the best solutions.
Mistake #4: Not Offering Retail Skincare Products
Many dermatologists are concerned about the ethics of skincare retail, either directly in their offices or through an online store. But the truth is that your patients want you to sell products, and this comes with numerous benefits for your patients and your practice.
For your patients, selling products in your office offers a one-stop-shop for all of their skincare needs. It saves them the time, money and the hassle of going out to various stores to try to find the right products for their skin. It also protects them from buying counterfeit or expired products through indiscriminate and untrustworthy online sources.
For your practice, an in-house or online retail store can help to increase revenue, encourage patient compliance and improve outcomes, which, in turn, makes everyone happy. If you can easily recommend a specific product that you know will be a good match for your patient’s skin type, you decrease the chance of irritation or other unwanted side effects. This, then, increases the likelihood that your patients will continue using that product and will thus see the results they want.
For more information about how you can become a Skin Type Solutions Physician Partner and gain access to exclusive Skin Type Solutions Approved products for your patients, please visit STSfranchise.com.
Developed by world-renowned dermatologist, Leslie Baumann, MD, the Skin Type Solutions® Franchise System is an educational, science-based skincare store that implements a simple and reliable system to maximize skincare product sales and improve patient compliance and results.
Based on Dr. Baumann’s patent-pending Baumann Skin Typing System, this first-of-its-kind retail model provides dermatologists with the scientific methodology, training, and education necessary to prescribe effective, customized skincare regimens utilizing multiple brands of products that have been independently tested and approved by Dr. Baumann. To learn more about what Skin Type Solutions can do for your dermatology practice, visit the STS site here.