Practice Economics
"Interconnecting" Your Practice
New business relationships can allow you to offer more patient-attracting services.
By Mark E. Kropiewnicki, J.D., LL.M

Patients appreciate practices that are able to provide a comprehensive mix of services and conveniences. And the services patients want aren't always limited to ophthalmology.

To better position your practice, you can look beyond your own internal resources for expansion opportunities. Consider these ideas:

• developing satellite offices or purchasing other practices
• bringing in subspecialty providers
• subcontracting for services that your ophthalmology practice doesn't typically provide, such as retina and oculoplastic services
• developing an "image practice" in which you can offer refractive surgery in a center that also provides plastic surgery and dermatological services
• promoting your practice to potential patients by participating in jointly sponsored seminars and media campaigns.

It's about relationships

Practice "interconnectivity" means developing business relationships with providers of goods and services that are related to your practice and its services. These mutually beneficial networks will enhance your services, while increasing the utility, convenience, and effectiveness of what you do.

Consider a trip to the supermarket. While shopping for food, you can do your banking, visit the florist, rent a movie, and get your film developed -- all at the same convenient place.

By interconnecting your ophthalmology practice with other related services, you and the other providers can benefit from each others' established clientele.

How do you become interconnected?

First, determine the right type and number of providers to include in your interconnected practice.

Then, assess the extent of the relationship you want. Should the other providers be owners, subcontractors, landlords or strategic partners? You'll need to plan and form the relationships to bring the necessary services or businesses into the network you want to create.

Be aware that changes -- often significant ones -- might be necessary in office systems, personnel, and your own mindset.

There are also legal aspects associated with an interconnected practice. You'll want to legally document your financial relationships. You also need to be sure to comply with Medicare anti-kickback statutes, Stark legislation, and applicable state laws and regulations relating to referrals, fee-splitting and licensing.

You don't have to develop a new office site to reap interconnectivity benefits. Just being connected with other providers at a comfortable level will help to improve and maintain patient satisfaction and at the same time create significant sources of additional revenue for your practice.

Plan before you act

Whatever path you decide to take, be certain that you know what you want, have a firm grasp of what it will cost, and construct a thorough strategy to help you reach your goals. 

Mark E. Kropiewnicki, J.D., LL.M., is a principal consultant with The Health Care Group, Inc., and a principal and president of Health Care Law Associates, P.C., in Plymouth Meeting, Pa. He regularly advises physicians and practices on their contracting matters and business law obligations. He can be reached at (800) 473-0032.