What’s Reasonable to Expect from Your Administrator?

Episode 81: What’s Reasonable to Expect from Your Administrator?

Welcome back to another episode of the Medical Money Matters Podcast, where we discuss crucial aspects of managing and growing your medical practice. Today we’re diving into a topic that is vital for the smooth operation and success of any medical practice: understanding what is reasonable to expect from your administrators.

As physicians, your primary focus is on patient care, and the backbone of any well-functioning practice lies in having effective administration. Whether you’re running a small clinic or a large medical group, it’s essential to have the right people in the right roles, and to have clear expectations for what they can and should be doing. At Health e Practices, we get a lot of requests to work with groups who have outgrown their current manager or administrator, or the physicians are unsure as to what exactly they should expect and at what salary range their leader should be paid given their responsibilities and capabilities. So today, we’ll be breaking down the roles of Clinic Managers, Practice Administrators, and C-suite Executives, discussing their responsibilities, qualifications, and what you should reasonably expect from each level.

By the end of this episode, you’ll have a clearer understanding of how to align your administrative team with the needs of your practice, ensuring you can focus on providing excellent patient care. Let’s get started!

 

First, let’s talk about Clinic Managers. This role is often the first level of administration in many practices. Typically, a Clinic Manager may hold a college degree, possibly in healthcare management or a related field, and they usually have 3-5 years of experience. Their annual salary usually falls between $60,000 and $90,000.

So, what can you reasonably expect from a Clinic Manager? A Clinic Manager is primarily responsible for the day-to-day operations of your practice. They ensure that everything runs smoothly on a daily basis. This includes supervising staff, managing schedules, and handling basic financial management tasks like budgeting and payroll. They play a crucial role in implementing policies and procedures to maintain consistency and compliance with healthcare regulations.

For example, a Clinic Manager is excellent at coordinating patient flow and appointment scheduling, which helps minimize wait times and improves patient satisfaction. They also manage office supplies and vendor relationships, ensuring that the practice has everything it needs to function efficiently. Additionally, they handle patient billing and insurance claims, which are essential for maintaining the practice’s financial health.

However, it’s important to recognize the limitations of this role. While Clinic Managers are skilled at managing day-to-day operations, they may not have the strategic planning capabilities needed for long-term growth and development. For instance, they might not be involved in high-level financial decision-making or business development initiatives. When your practice starts to grow and you need more strategic oversight, it may be time to consider higher-level administrative support. We generally see this happening when the group exceeds 4 physicians and/or about $3 million in annual revenue.

In summary, Clinic Managers are the backbone of daily operations. They keep the practice running smoothly, ensuring that patients and staff are well taken care of. But for more strategic planning and advanced financial management, you’ll need to look beyond this role.

 

Next, let’s move on to the role of a Practice Administrator. This position requires a higher level of education and expertise, typically involving an advanced degree such as an MBA or an MHA, and they generally come to your practice with 10-15 years of experience in running groups, sometimes at the Clinic Manager level as their career has progressed. The annual salary for a Practice Administrator generally ranges from $120,000 to $150,000. So, what can you expect from someone in this role?

A Practice Administrator is responsible for strategic planning and execution within your practice. They take a comprehensive approach to financial management, ensuring the practice’s financial health and sustainability. This includes creating and managing budgets, analyzing financial performance, and making informed financial decisions. Their role extends beyond just managing money; they also oversee human resources, handle high-level staff management, and spearhead marketing and business development efforts.

For example, a Practice Administrator can develop and implement long-term business strategies that align with the practice’s goals. They are adept at analyzing financial data to make strategic decisions that enhance the practice’s profitability and efficiency. Additionally, they oversee major projects such as implementing electronic medical records (EMR) systems or expanding the clinic’s physical space.

A key responsibility of a Practice Administrator is to enhance patient experience and satisfaction through strategic initiatives. They might implement new technologies that streamline patient interactions, develop marketing campaigns to attract new patients, or create programs to improve patient retention and loyalty. This role generally works to run groups up to 15 physicians and approximately $10 – 15 million in annual revenue.

While a Practice Administrator brings a lot of strategic value to the table, there are still limitations. They might not have the specialized expertise required for the highest levels of strategic planning and business development, which is where C-suite executives come into play.

To summarize, Practice Administrators are essential for the strategic growth and management of your practice. They bring advanced financial management skills and strategic planning capabilities that are crucial for long-term success. If your practice is growing and you need more sophisticated management, than a Clinic Manager, a Practice Administrator is a great investment.

 

Now, let’s talk about the role of C-suite executives in larger medical groups. This includes positions like Chief Executive Officer (CEO), Chief Operating Officer (COO), and Chief Financial Officer (CFO). These roles are typically filled by individuals with advanced degrees and extensive experience in healthcare administration. Generally, this applies for groups of more than 15-20 physicians and with annual revenues in excess of $15 million. The annual salary for C-suite executives is usually $250,000 or more, and in some cases, they might also be offered partial ownership of the practice. So, what can you reasonably expect from a C-suite executive?

C-suite executives are responsible for high-level strategic planning and business forecasting. They look at the big picture and make decisions that shape the future of the practice. This includes developing new lines of business, identifying growth opportunities, and ensuring the long-term sustainability of the practice.

For example, a CEO might spearhead mergers and acquisitions, bringing in new practices or partnering with other healthcare organizations to expand services. They are also involved in large-scale market expansion and outreach efforts, helping the practice grow its patient base and increase its market share. In many cases where groups are large enough to have C-Suite executives, the physician owners delegate most of the business functions to these professionals, providing oversight at the board level during monthly board meetings, and some may be more involved at an Executive Committee level or utilize some other committee structure for times when the C-Suite folks need more physician input.

A COO, on the other hand, focuses on the internal operations of the practice. They ensure that all departments are working efficiently and that the practice is running smoothly. This might involve implementing new technologies, optimizing workflow processes, and improving overall operational efficiency. Again, they have broad responsibility for assuring the internal workings are a well-oiled machine.

The CFO is responsible for the financial health of the practice. They oversee financial planning, budgeting, and reporting, ensuring that the practice remains profitable and financially stable. They also handle investor relations and work on securing funding for major projects.

There is some debate in the industry as to whether the Revenue Cycle department should report up through the COO or the CFO. For my money, I’d prefer it be the CFO, with a matrixed relationship to the COO, although in some groups, it works the other way around. Regardless of formal structure, your group will perform best when both of these leaders are actively involved in keeping the revenue cycle healthily.

Having C-suite executives can bring significant benefits to larger practices. They provide the strategic vision and leadership needed to navigate complex healthcare environments and drive long-term growth. They also bring a wealth of experience and expertise that can help the practice stay competitive and innovative.

In summary, C-suite executives are essential for large medical groups that need advanced strategic planning and leadership. They bring a high level of expertise and experience, helping the practice achieve its long-term goals and maintain its competitive edge.

 

Now that we’ve discussed the roles of Clinic Managers, Practice Administrators, and C-suite Executives, let’s talk about what is reasonable to expect from each level of professional. It’s important to align your expectations with the qualifications and expertise of each role to ensure that your practice operates efficiently and effectively.

For Clinic Managers, you can expect them to handle the day-to-day operations of your practice. They should be able to manage staff schedules, oversee patient flow, handle billing and insurance claims, and ensure that the practice complies with healthcare regulations. However, it is not reasonable to expect them to develop long-term business strategies or make high-level financial decisions. Their focus should be on keeping the practice running smoothly on a daily basis.

For Practice Administrators, you can expect a higher level of strategic involvement. They should be able to develop and implement business strategies, manage the practice’s finances, oversee human resources, and drive marketing and business development efforts. It is reasonable to expect them to handle major projects and enhance patient experience through strategic initiatives. However, for highly specialized or advanced strategic planning, you may need to involve C-suite executives. Some groups do this on an outsourced, prn basis while they are growing. Once they reach the appropriate size, they can consider adding full time C-suite executives.

For C-suite Executives, you can expect them to provide high-level strategic leadership and vision. They should be able to develop new lines of business, manage large-scale market expansion efforts, oversee mergers and acquisitions, and ensure the long-term sustainability of the practice. It is reasonable to expect them to bring innovative solutions and drive significant growth for the practice. However, their involvement is typically more necessary in larger medical groups with complex needs.

By aligning your expectations with the qualifications and expertise of each role, you can ensure that your practice operates efficiently and effectively, allowing you to focus on providing excellent patient care.

 

To wrap up today’s episode, let’s recap the key points we’ve discussed. Understanding the roles and expectations of Clinic Managers, Practice Administrators, and C-suite Executives is crucial for the success of your medical practice. Each level of professional brings different skills and expertise, and it’s important to align your expectations accordingly.

Thank you for joining me on this episode of the Medical Money Matters Podcast. I hope you found this discussion helpful and informative. If you have any questions or need personalized consulting and support, don’t hesitate to reach out to Health e Practices. We’re here to help you navigate the complexities of medical practice management.

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