Why Group Practices Fail? – Pitfalls to Avoid
Just like any other project, a Group Practice also transits from Ideation to Execution. However, the maturity of the principles of a Group Practice and the success of a Group Practice depends on how the process of forming a Group Practice is undertaken by each of the Groups. The cause for this thing to come up is questions like:
Why is the other member earning off my hard work?
Why does the other member go home at 6 PM whereas I slog till 9 PM?
Why am I the only one attending emergencies?
Why is the other member well-known in the fraternity whereas I do all the procedures at the setup?
I invested the entire amount of the setup. Why is the other member even getting variable returns?
All the patients are coming in my name. The other members are enjoying practice at my cost. What if they leave me and take away my patients?
Instead of getting irritated by the above questions, you need to first ask, “Whether I consulted group-practice.com with this?” If the answer to this is no, then you need to first do that because what otherwise would take you years to crack, you can learn from our experience and expertise. You may book your consultation with us Here.
Nonetheless, let us share herewith our experience of years and general observations on the causes of the failed Group Practices that we have come across:
I. Flawed Compensation Model
Often, Group Practices fail to perform a KYP and blindly apply what has worked for some other Group Practice. The most common source of information for most Group Practices is a discussion with some other successful Group Practice nationally, a member of which interacted with You over a National Conference (CME). They discussed with you the tip of their iceberg and you walked on the path assuming that was all to know about it. You asked them some questions about the problems that you encountered, and they replied with how they solved those, and again, you blindly applied them because they were successful in that approach. You also believed that this was the only way as you role-modelled them. However, you did not understand that what worked for them does not necessarily works for you. Also, you implemented something by just getting to know the upper layer and not the intricacies.
Hence, a flawed compensation model is the most common source of issues that arise in the Group Practice, which creeps its way into various other areas and leads to an irreversible rift between the members leading to the ultimate cause of failure of the Group Practice.
II. Lack of Communication
Problems occur. The mature thing to do as intellectuals is to discuss. However, in most Group Practices, we have observed that there is no culture of daily and weekly meetings. Work-based meetings to discuss operational and Group Practice matters are key for the sustained operations of the Group. This is because, it creates a normalcy to allow everyone to speak up. If there are any issues being faced by any particular member over any particular issue, they need to be solved rather than allowing them to be piled up. At the same time, each member of the Group Practice has to be considerate that it is a give-and-take and not only take-take.
Also, we have observed that for most Group Practices, there are no quarterly social dinners or an annual vacation. Professionals can be subject to ear-filling done by family members and that may become a cause of conflict. Involving family members once a quarter and making them part of the social aspect of the Group Practice makes them appreciate the Group Practice more and allows for a healthy Group Practice.
III. Equipment Purchase Decision
Most commonly, in multi-speciality Group Practice, resources are limited for expansion; however, wants are unlimited with each multi-speciality member wanting that their investment should be prioritised. On non-fulfilment of such a request, the disgruntled member starts looking at everything to be flawed and keeps complaining to the point of exit.
IV. Work Ethic
Unaligned work ethic has been one of the other most commonly observed root cause for the failure of Group Practice. If this exists, there is an irreversible cause lingering around and hence, the Group Practice should be dismantled. The earlier, the better! However, the question that needs to be asked is why was this not evaluated at the time of forming the Group Practice itself. This is critical to evaluate before the incubation of the Group Practice and not afterwards.
V. Indecisiveness
We have seen many Group Practices have things undecided at the beginning and plan to decide when the event comes. For example, exit of a member. At the time of joining a Group Practice, nobody discusses Exit as it is considered to be a negative thing at the time of joining hands; more like discussing divorce terms at the time of marriage. However, though a Group Practice is akin to marriage, it is less social and more professional. Hence, all the terms and questions need to be answered beforehand and should not be left lingering.
Most of the junior members of the Group Practice leave on account of indecisiveness of the various issues concerning them and lack of clarity on the growth path within the Group Practice. Hence, this is also a key reason for the failures of Group Practices.
VI. Lack of Document
One of the worst things to do is to not document the understanding of the Group Practice. A verbal commitment over the terms of the Group Practice is the sown seed of demolition. This may work only between friends who have studied at college together and start afresh after their formal education. However, in the medium term, people change and that also fails for such a Group Practice. The rest of the types are bound to fail on this part, if not now, then only a matter of time.
VII. Overestimated Synergy
At times, members join to form a Group with a large vision and go overboard. For example, if three members join together, the individual practice of each is of 100 patients, they overestimate synergy benefits and establish a setup to cater 1000 patients, leading to significant overheads and financial stress. At such times, the focus shifts on various other things and if growth does not happen, they tend to blame it on each other and leads to the ultimate failure of the Group Practice.
VIII. Nose Poking
Most of the Group Practices are offshoots of Solo Practices. Most Solo Practices allow the interference of family members of the Professional in administering the setup. Hence, spouses, parents and/or siblings of the Professional are forever involved in the administration of the setup, including the decision making of increment of staff and monitoring the overheads of the setup. On the formation of a GP, the fellow professional is looked at as an outsider by these privileged administrators (who are there in the first place on account of their relationship with the lead Professional and not on their skills) and then they poke their nose in each decision that the new member takes, be it a staff increment, or advance of some salary to staff or even like simply leaving the AC of their consulting cabin on while they move to the Operation Theatre for surgery.
Yes, we have come across such reasons also to be an identified cause (among other things) of dispute between members. While we understand that these are consequential observations pursuant to some main underlying issue from amongst the ones discussed above, this elevates the feeling of exit among members when happens persistently.
How can we Help?
We have seen many Group Practices have things undecided at the beginning and plan to decide when the event comes. For example, exit of a member. At the time of joining a Group Practice, nobody discusses Exit as it is considered to be a negative thing at the time of joining hands; more like discussing divorce terms at the time of marriage. However, though a Group Practice is akin to marriage, it is less social and more professional. Hence, all the terms and questions need to be answered beforehand and should not be left lingering.
Well, we can run the entire process for you! We have deep experience in understanding the nuances of Group Practices, and you can implement the Group Practice by being sure that you have done all the basics right and sets you to do what matters the most for the Group Practice i.e., practice.