Financing with Surgery Centers to Maximize Volume

As we mentioned previously, in-house financing can be a powerful tool for Cosmetic Surgeons, allowing them to take control of their patient financing and increase revenue, while saving payments to third party financiers. While down payments on these financing plans are often dictated by the hard costs involved (surgery center, anesthesiologist, etc.) one surgical group is taking this concept one step further by getting an agreement from their surgical center to also finance some portion of their fees, thus lessening the required down payment, and further increasing the number of procedures. In our most recent post on the subject, we discussed covering at least the hard-costs in the down payment, and putting the rest on a payment plan. For example, a practice may charge $6,000 for a procedure, of which $3,000 goes to the surgical center and anesthesiologist. This dictates the minimum down payment is $3,000, ensuring the office is covered on hard costs from square one. But what if a patient can only put down $2,000? Most Cosmetic Surgeons wouldn't want to necessarily turn that person away every time, especially if they have room in their surgery schedule to fit them in. It turns out, the surgical center feels the same way. An empty surgery room is lost revenue in their eyes, so if they can be persuaded to accept a portion of the $2,000 as a down payment and generate a payment plan for the rest, the surgery center can also maximize the use of their facility. Granted, the possible risk involved if the patient defaults makes this strategy slightly more aggressive, but for the surgery group we spoke to, the immense upsurge in their number of office visits more than made up for it. If the surgeon [...]

2017-01-18T17:34:45+00:008:32 am|

Nip/Tuck your Financing Plan

Last week, we discussed the myriad benefits of employing a membership model in the Plastic Surgery industry. The main purpose of this model is generating loyalty to the practice whether it be for practice based non-surgical procedures or from affiliated med spas.  This loyalty can also result in a great deal more referrals for surgery patients. While many practices offer discounts on surgical procedures to patients in membership programs, financing these procedures can still be an enormous hurdle. Third party financing companies have significantly reduced approval rates, cover fewer procedures and take from 4-10% of the procedure value, oftentimes, the entire procedure, including fees paid to the surgery center and anesthesiologist. It’s no wonder many practices are adopting in-house financing programs as a complement to third party options, thus accepting more business and side-stepping many of the pitfalls of third party financiers. In some cases, practices are reducing their spend with the 3rd party financiers in favor of their own financing. Many Plastic Surgeons focus on outbound marketing to drive business to their practice. Print ads, commercial spots, social media, etc. all serve to drive potential surgery leads to the operating table. However, financing complications can nullify the effectiveness of outbound marketing by impeding the number of leads resulting in surgeries. In our current credit crisis, it is entirely possible that out of 100 potential leads that walk into the office, only 15-20 will be approved for financing. Unless they can pay for the entire procedure out of pocket, the rest are likely to just walk out the door to a competitor. In-house financing puts the power to accept patients into the hands of the practice, and advanced financing software makes it easy to approve, track, and bill these [...]

2017-01-18T17:38:36+00:008:34 am|

Giving your Membership Plan a Facelift

It’s no secret that the current economic climate is tough for many medical professionals, and plastic surgeons are among the hardest hit. Cosmetic surgery is a luxury for many consumers, and many plastic surgeons we've talked to have seen a 30-40% hit in the number of procedures they perform each year. This is exacerbated by the decline in approvals from 3rd party financing options.  In order to capture the business of the consumer, plastic surgeons need a way to stand out from their competitors and ensure customer loyalty. Luckily, this industry is uniquely suited for two of the business solutions we've discussed in this blog, namely in-house financing and membership programs. Let’s first explore membership programs. While many associate plastic surgery with larger procedures such as rhinoplasty and augmentation surgeries, many practices also offer non-surgical procedures such as Botox/XEOMIN, collagen, various peels and laser treatments. Some of the practices also operate med-spas to expand their offering including anti-aging treatments, dermabrasion, massage therapy and more. While these procedures can be a great source of supplemental income, it can be difficult to ensure patient loyalty. There’s nothing keeping patients from hopping from practice to practice for these procedures, going to whichever practice offers the best deal for that week. By offering a membership plan, doctors can ensure practices retain patient loyalty, and create a steady stream of business. As we’ve discussed previously, the membership model’s success is built on the strength of loyalty programs, a concept tried and true in multiple industries. If patients have committed to a membership at one practice, they will not only return there for all their non-surgical services, they’re also much more likely to refer other patients to that practice. While some practices offer a single, annual membership plan, [...]

2017-01-18T17:40:53+00:008:37 am|