A medical spa had a first year average cash flow of $100,000. 16 months later the cash flow had quadrupled by expanding the service menu and bundling offers.

A women’s health practice went from seeing 4-6 medical cosmetic patients per day to 18-22 patients per day through improving the internal marketing plan.

A plastic surgery center increased sales by $30,000 per month through resource utilization restructure and internal marketing plan to promote patient crossover from minimally invasive services to cosmetic surgery and vice versa.

A dermatology practice increased sales by $8,000 per week through an internal and external marketing plan through current and prospective education services and implementation of detailed treatment plans.

Overview


The challenges of staying on the forefront of the latest technology and making it a financially viable are not to be taken lightly. To remain competitive in the medical cosmetic industry and make profitable investments takes a creative and business savvy approach.

Often, it is mistaken that simply buying advanced technology will lead to recruiting new patients or recovering patients who have not been in the office for a while. The frequency of new equipment purchases with paid advertising is a common plan that is certain to drive expenses greater than cash flow. The imbalances created with this plan results in lack of net profits or absorption of net profits from another source of cash flow such as another business entity under the same umbrella.

Successful practices often remain oblivious to the weaknesses in their business model as there is sufficient income to have a net profit. However, the bottom line is the practice could improve processes and do more than have some degree of wealth. The potential is there to have wealth while building a business of tremendous value.

Considerations


Using data collected over almost nine years there are many consistent components to optimizing net profits and are unrelated to any specific business brand. Patient retention is the most important factor in any practice success campaign. Excellent customer service is always a factor.

In medical cosmetics it is the treatment outcomes that nearly supersede customer service in the traditional sense. Upon initial consultation the clinical provider should be skilled in establishing reasonable goals and treatment outcomes based on the patient’s expectations, timeline for results and budget. At every appointment the treatment plan is evaluated and modified as necessary. The patient is purchasing an outcome and the practice is selling a procedure.

Those two actions must come together in a plan through treatment plan mapping and continuity of the treatment plan mapping. Continuity of care is not only an invaluable part of the relationship with the patient but also lends opportunity to most effectively make changes in the treatment plan and up sell.

Conclusion


By applying well-defined duplicable methods, medical cosmetic practices can increase cash flow by $30K-$40K per month within three to six months with advisory services while continuing steady growth. The benefits of any new marketing campaign can take up to six months or six prospective patient exposures to advertising before they act and actually make an appointment.

There is always a chance the investment of money in the marketing campaign will be ineffective and even time has been lost. There is even a greater chance the long term financial gain of the marketing campaign will at best keep a practice stagnate in financial growth because it does not address the core of the practice potential.

Having applied these duplicable methods from a variety of practice platforms including internal medicine, family practice, medical spa, cosmetic surgery, dermatology, concierge medical practice, women’s care and even medical weight management it has been determined that sustainable consistent growth of the business can be guaranteed. The feasibility of the degree of immediate cash flow increase is determined by the available resources of the practice which continues to grow along with the sustained financial growth.