Here are the results of the Practice Builders August 2008 Economy Survey:
1) How is your practice performing during the economic downturn in 2008?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
No change |
16.7% |
16.9% |
|
Decreased by 1-10% |
29.8% |
26.2% |
|
Decreased by 11-20% |
14.3% |
20.0% |
|
Decreased by more than 20% |
3.6% |
9.2% |
|
Improved by 1-10% |
25.0% |
20.8% |
|
Improved by 11-20% |
9.5% |
3.1% |
|
Improved by more than 20% |
1.2% |
3.8% |
47.7% practices reported decreases compared to 55.4% in April — that is the good news. The bad: nearly half of all practices are still losing ground.
And note that 47% matches the percent that is decreasing or not changing its marketing during the recession, or is lowering prices (see Question #8). Decreasing your marketing is the wrong move in a down economy.
2) Is your competition increasing?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
Yes |
55.4% |
N/A |
|
No |
44.6% |
N/A |
It is always important that you take action to generate inquiry calls, protect your referral flow, build relationships with potential new referrers, and train your staff to convert more patients. In a down economy, it's even more important.
3) Have your inquiry calls decreased?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
Yes |
39.8% |
N/A |
|
No |
60.2% |
N/A |
4) If so, by how much?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
1-10% |
61.1% |
N/A |
|
11-20% |
27.8% |
N/A |
|
21-30% |
8.3% |
N/A |
|
31-40% |
2.8% |
N/A |
|
More than 40% |
0% |
N/A |
If your inquiry calls are down, there are simple, proven strategies available to regain them. You may even be able to boost your inquiry calls higher than ever during a recession.
5) If you have seen a decrease in practice revenue, has it been more or less than during previous economic downturns?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
Larger decrease |
25.9% |
39.6% |
|
Same |
55.2% |
44.8% |
|
Less of a decrease |
19.0% |
15.6% |
Good news. These numbers suggest the recession is moderating or has at least stopped getting worse.
6) How many of your colleagues and competitors have closed their practices in the past year?
|
Responses |
Response Percent August 2008 |
Response Percent April 2008 |
|
0 |
60.5% |
N/A |
|
1 |
19.8% |
N/A |
|
2 |
12.3% |
N/A |
|
3 |
2.5% |
N/A |
|
4 |
0.0% |
N/A |
|
5 or more |
4.9% |
N/A |
Nearly 40% have seen at least one colleague or competitor close his/her practice. This suggests the pool of patients who can afford to pay you is shrinking — meaning you need to compete harder to get your share.
7) If you have seen an improvement in practice revenue, to what do you attribute this?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
Increased marketing |
30.8% |
33.9% |
|
Type of practice |
26.9% |
17.7% |
|
Patients not affected by downturn |
11.5% |
9.7% |
|
Community not affected by downturn |
5.8% |
8.1% |
|
Other |
25.0% |
30.6% |
Increased marketing is still the top reason practice owners give for improvement in their revenue. Boost your marketing and you could actually grow and expand your practice during this down economy.
8) What are you doing during the economic downturn to protect your practice?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
No change |
29.8% |
24.8% |
|
Increased marketing |
56% |
50.4 |
|
Decreased marketing |
3.6% |
3.1% |
|
Other (lowering prices, doing special offers) |
10.7% |
21.7% |
56% of your competitors and colleagues are boosting their marketing during this recession — more evidence suggesting that marketing aggressively during a recession will benefit your practice.
9) How has your community been affected by the economic downturn?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
No change |
6.0% |
7.0% |
|
Slightly affected |
42.2% |
49.6% |
|
Moderately affected |
41.0% |
35.7% |
|
Heavily affected |
10.8% |
7.8% |
Note the increases above in "moderately affected" and "heavily affected." Most of your prospects and patients have less discretionary income. Make sure they do not treat coming to you as a discretionary expense. Let them know seeing you regularly is essential to their health. This will help reduce your losses — and maybe even bring you gains — during the down economy.
10) Have you changed expansion plans due to the downturn?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
Yes |
31.7% |
25.2% |
|
No |
68.3% |
74.8% |
|
Yes, decided not to add an associate |
13% |
5.8% |
|
Yes, decided not to open another location |
4.3% |
8.7% |
|
Yes, decided not to add a new service (medspa, lasik, etc.) |
7.2% |
8.7% |
|
Yes, delayed other expansion plans |
7.2%
|
6.7% |
|
No, planning to add an associate |
30.4% |
23.3% |
|
No, planning to open another location |
10.1% |
11.6% |
|
No, planning to add a new service (medspa, lasik, etc.) |
10.1% |
15.5% |
|
No, developing other expansion plans (please describe) |
17.4% |
19.4% |
More practice owners are becoming fearful, possibly giving you an opportunity to seize market share, patients and referrals from your timid competitors.
11) Have you had to lay off staff or close a location in the past year, or do you expect to have to do so?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
Yes |
18.5% |
N/A |
|
No |
81.5% |
N/A |
Nearly 1 in 5 has had to cut staff. Watch for future economic surveys to track this telling trend.
12) How has your patient mix/types of cases changed as a result of the economy?
|
Response |
Response Percent August 2008 |
Response Percent April 2008 |
|
Not at all |
N/A |
59.0% |
|
Seeing more Medicare patients, fewer discretionary spenders |
40.3% |
19.7% |
|
Seeing more discretionary spenders, fewer Medicare patients |
29.0% |
8.2% |
|
Other |
30.6% |
13.1% |
To attract more cash-paying, discretionary patients, communicate (market) to these prospects all the unique benefits they'll enjoy by coming to your practice, and you are likely to see more of them.
13) What type of practice do you have?
|
Specialty |
Response Percent August 2008 |
Response Percent April 2008 |
|
Allergist |
0.0% |
0.9% |
|
Anesthesiologist |
0.0% |
0.05 |
|
Audiologist |
0.0% |
6.5% |
|
Bariatrician |
4.2% |
0.05 |
|
Cardiologist |
1.4% |
0.9% |
|
Chiropractic |
N/A |
1.9% |
|
General Dentist |
15.5% |
15.7% |
|
Dermatologist |
2.8% |
0.9% |
|
Endodontist |
2.8% |
2.8% |
|
ENT |
0.0% |
1.9% |
|
Family Practitioner |
11.3% |
2.8% |
|
Gastroenterologist |
2.8% |
0.0% |
|
General Practitioner |
8.5% |
4.6% |
|
General Surgeon |
4.2% |
3.7% |
|
Hearing Specialist |
1.4% |
0.0% |
|
Neurologist |
1.4% |
2.8% |
|
OB/GYN |
4.2% |
1.9% |
|
Ophthalmologist |
5.6% |
4.6% |
|
Orthodontist |
5.6% |
7.4% |
|
Orthopedic Surgeon |
5.6% |
3.7% |
|
Pain Management Specialist |
4.2% |
4.6% |
|
Periodontist |
1.4% |
1.9% |
|
Physiatrist |
0.0% |
0.9% |
|
Physical Therapist |
7.0% |
13.9% |
|
Plastic Surgeon |
2.8% |
4.6% |
|
Podiatrist |
2.8% |
7.4% |
|
Pulmonologist |
0.0% |
0.0% |
|
Radiation Oncologist |
1.4% |
1.9% |
|
Sleep |
1.4% |
0.9% |
|
Urologist |
0.0% |
0.9% |
|
Veterinarian |
1.4% |
0.0% |
14) Your age is:
|
Age |
Response Percent August 2008 |
Response Percent April 2008 |
|
30-35 |
5.2% |
8.2% |
|
36-40 |
15.6% |
18.0% |
|
41-45 |
15.6% |
23.8% |
|
46-50 |
28.6% |
17.2% |
|
51-55 |
11.7% |
18.0% |
|
56-60 |
16.9% |
10.7% |
|
61-65 |
6.5% |
3.3% |
|
Over 65 |
0.0% |
0.8% |
15) Your practice is located in what state?
|
State |
Response Percent August 2008 |
Response Percent April 2008 |
|
AK |
|