Incorporation of Ancillary Services

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Incorporation of Ancillary Services

Business of Medicine
Author Credentials 

Lance Manning, MD
Ear, Nose, and Throat Centers of the Ozarks
Springdale, A

Module Summary

In order to allow for a sustainable, profitable business model and provide greater access for patients, many Otolaryngology practices incorporate a variety of ancillary services into their practices. In addition, these services may have the potential to allow for capital improvements to allow for a greater breadth of care for the service area, more and higher quality clinical and clerical staff, purchase and implementation of new technology, funding for research and development, and augmentation of the care that an Otolaryngologist provides. Via a series of questions and exercises, this module helps take the physician through the thought process of adding additional ancillary services.
 

Module Learning Objectives 
  1. Describe a SWOT analysis.
  2. Recognize the advantages and disadvantages of adding ancillary services to your practice.
  3. Review which services make the most sense to add to your practice.
  4. Explain the potential staffing or schedule changes required when adding ancillary services.
  5. Describe how to incorporate the new service into the existing workflow.
  6. Learn how to maximize both internal and external marketing and advertising efforts to grow the new service line.
  7. Cite how to bill and code for the new service line.
Review
  1. SWOT analysis
  2. Will the new service line improve patient care and/or access?
  3. How will adding ancillary services help the bottom line?
    • List all of the costs associated with adding the new service.
    • Calculate the lost opportunity cost that will be taken away for the time that the physician/practice would e providing existing service lines.
    • Finally calculate a best case and worst case scenario for revenue generation from the new service line.
  4. Is the practice doing other things well enough that if it adds additional services, it won't have a negative impact on existing care and services?
  5. Does the new service add an inordinate amount of time to the patient visit?
  6. Does the practice have the right staff?  If not, what is the cost to bring in the qualified staff to render the services.
    • List your current staff and their respective job duties.
    • List when existing staff have additional time that can be utilized and allocated toward new growth opportunities.
  7. Does the practice have the physical space?
    • Determine how much of your clinical space is actually generating revenue by taking the square footage of the building and splitting it into how much is producing revenue and how much is not.
  8. Are your staff and partners committed to the process?
    • Define the value proposition to the patients and the practice.
    • Describe how you will convey the value proposition of the new service to your staff and partners.
  9. How will this service line affect referral relationships?
    • Describe this new service line will negatively or positively affect relationships with referring providers, other specialists, hospital system, and other Otolaryngologists.
  10. Should I keep the entire service line in-house, or does partnering with the above mentioned parties with whom there are already established relationships make more sense?
  11. Which services most sense to add?
  12. How does the practice code and get paid for the service?
  13. How will I market the new service line?
    • Describe the internal and external marketing plan, tolls, and cost for the new service line
Resources 

Learner must Sign In or Create account to access AAO-HNSF education activities.

  1. Annual Meeting Webcast (AMW):
  2. AAO-HNS Practice Management