Practice Strategies

Staffing Up: How To Get The Right People Doing The Right Things

There’s a concept making some noise in world of human resources. It’s called the aligned workforce. It’s a fancy term to describe having the right people in the right places doing the right things.

A groundbreaking study conducted by Cornell University and HR powerhouse Gevity found that when all three of the components (right people, right place, right thing) are aligned in the workplace, they conclusively drive business success. The results of this study offer three key takeaways for those interested in improving practice performance.

Look for the right fit. An aligned workforce starts with what is called the person-future fit. Instead of simply hiring someone for his or her ability to fill a position and provide immediate results, look to hire staff with exceptional talent who can add value to the practice for the long term.

Implement the right systems. In a small medical practice, it’s easy to “manage” by constantly looking over the shoulders of employees. Instead, developing formal management systems or providing employees the opportunity to manage themselves appears to be a much more effective human resource strategy.

Use the right motivators. Medical practice employees who develop a sense of passion for one another and the practice’s mission and vision are more likely to succeed than those who favor work or money as motivators.

Signs You May Need Help

So, how do you know when your practice doesn’t have the right people (or number of people) on the job? Fortunately, the symptoms of improper staffing levels are usually fairly obvious, including:

• A low collection ratio. Most primary care practices have a collection ratio (gross receipts divided by charges) of 50 to 65 percent. If yours is substantially lower, you may not have enough people doing billing and collections. Adding an extra clerk could raise more than enough revenue to justify the new salary.
• Constant complaints. Whether it’s patients grousing about long waits or an overworked receptionist bending your ear, this is a sure sign of a staffing shortfall.
• That unproductive feeling. If you or your clinical staff are feeling constantly rushed but are not seeing as many patients as you could, you may need more clinical help.

What Do You Need?

At the minimum, a solo physician typically needs the following:

• Receptionist
• Checkout clerk
• Office manager (who also does billing)
• Medical assistant or nurse

In larger practices, patient volume, specialty, percentage of patients enrolled in managed care plans and level of computerization all affect staff size and makeup.

What Should You Spend?

To calculate how much to spend on staff, look at the typical ratio of staff costs to revenues for your specialty. For example, the list below shows the median total staff cost (including benefits) for various non-hospital-owned, single-specialty practices:

• Family physicians = 32 percent of medical revenue
• Internists = 30 percent
• Pediatricians = 28 percent
• Ob/gyns = 26 percent

If you're spending less on staff than other physicians in your specialty, explore whether hiring more people could increase patient flow or collections. If you're spending more than the median, you might be able to reduce your staff costs without negatively affecting efficiency.

Don’t Forget The Tech Boost

Proper use of technology can significantly increase efficiency and revenues while reducing the amount of staff time spent on repetitive tasks. Electronic claims submission, for instance, saves time and reduces the number of errors in claims, thereby decreasing the number of resubmissions. And scheduling software allows multiple employees to access the appointment schedule simultaneously, so several people can book appointments at the same time.

Now, Keep Them Happy

You know how important competitive salaries and benefits are in maintaining a happy and loyal staff. The trick is figuring out how much is enough.

Base the starting salaries you offer on what it takes to hire a competent person in your area. If local physicians tell you that the going rate is $12 an hour, yet none of your applicants will sign on for less than $14, then $14 is your number. Be as generous as you can. If you pay slightly more than the average, you'll save money in the long run because you’ll have less staff turnover.

Know, too, that nonclinical employees account for 90 percent of the turnover in medical practices. A main reason they choose to leave is dissatisfaction with the doctor or the office environment. So try to foster a team environment and keep office morale high. Clinical employees receive constant feedback from the doctor, but it’s important to remember to express praise and gratitude to nonclinical employees, as well.

For more information about our services to the healthcare industry, Contact:
Maxine Lawyer, Director of Healthcare Services at 972.448.6905.

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.
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