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Marketing audits help rehab providers find hidden money

Rehab Regs, May 20, 2003

Source: Briefings on Outpatient Rehab Reimbursement and Regulations, September 2002

A marketing audit allows rehab clinics to maximize the amount of money they receive from new patients and take stock of competitors.

"Many therapists in private practices are asked to reduce expenses over and over," says John W. Fick, president of John W. Fick and Associates, a consulting firm in Canton, MI.

But there's another issue to consider: revenue. And marketing audits can help you increase it. They show where your marketing dollars are going and whether they are working for you, says Fick. After these audits, you can spot holes in your practice where you've wasted marketing money, and then create a plan to fill them.

What is it?

A marketing audit includes a comprehensive, periodic examination of an organization's marketing objectives, strategies, and activities.

One of the biggest mistakes most therapy practices make is the absence of a strategic marketing plan, says Fick.

Many therapists possess strong clinical backgrounds, but do not have a particularly strong business background. A lack of business sense can hurt private practice owners because they don't know how to reach out to new patients.

A marketing audit allows you to review how you get new patients; so, if a tactic isn't working, you can tweak it.

A strategic marketing plan should include, in writing, the following criteria:

• A mission statement for the coming year

• Environmental rehab market assessment, including competitor analysis

• Goals for the year, such as the number of referrals your practice hopes to receive

Don't just create a plan and forget about it. Fick stresses the importance of implementing the plan. "I know of a lot of practices that have written plans that just sit on a shelf collecting dust," he says.

"You have to review your plan on a consistent basis to know if you have made progress."

Review your plan every three months to help you keep track of your business goals, Fick says. The review should take from two to four hours.

In each review, assess your accomplishments as they compare to your goals and mission, any failures, the return on your marketing investment, new rehab market issues and regulatory changes, and what your competitors did during the quarter.

Data collecting

Use patient and referral satisfaction questionnaires to collect data for your marketing audits. Give patients questionnaires before they leave your office; mail the referral questionnaires to doctors with whom you do business.

As you begin measuring the data, benchmarks and trends will become evident. A marketing audit works by spotting trends, explains Fick.

When looking over quarterly reports, you can adjust your practice objectives per season.

"Summertime is often a very difficult season for practices to overcome, especially with referrals," he says. "Physicians are on vacation, [but] if you anticipate that, you can plan accordingly."

The owner of your facility should do the marketing audit when the practice is in its infancy, Fick says. As the practice grows, think about hiring someone to perform this task, but keep a strong connection to the findings.

"I would encourage all new practitioners to commit 50% of their time developing the business and the other 50% of their time performing therapy," he says.

Editor's note: For additional information, please contact John Fick at JWFick@aol.com.

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