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Aug 29

Escape The Prison of Cost Based Thinking

Many medical groups, especially those run as a club or collection of colleagues, fear spending any money because they view spending as a cost. They view it as decreasing the cash available for distribution and their business is all about current cashflow. They have a pure lifestyle business.

Perhaps that business played out well for 20 years. But in today’s market, it’s a losing proposition.

Many physician groups are afraid of what’s going to happen in the future. Continued hospital-controlled healthcare. Perhaps even government controlled healthcare, especially the looming single payer system if Clinton is elected president.

Your only hope of breaking out of those constraints is to become aggressive in doing deals and in finding new ways of growing your business — and that requires spending money.

If your mindset is that spending money is a cost then you’re going to be constrained every time, by yourself, by your colleagues: “We need to keep up cash-flow.”

Instead you have to consider spending on your future as an investment in yourself and as an investment in your group. It’s a mindset change, but it is incredibly powerful.

Try this: Ask yourself what you or your practice or medical group is worth. Now can you honestly say that you wouldn’t invest $100,000 or even $200,000 to protect that value?

Comment or contact me if you’d like to discuss this post.

Mark F. Weiss

www.advisorylawgroup.com

 

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