You’ve done it. You’ve decided to take the plunge and open your own dermatology practice. Congratulations! But take care: With about 20 percent of new small businesses failing in the first year, it’s key to learn from those who have traveled the road to health services self-employment before you. So before you shop for locations and window treatments, here are five strategic tips to ensure your open-for-business experience is healthy and successful. 

Secure your capital. 

It’s true: For a new business to succeed, it really does take money to make money. Experts estimate that almost 30 percent of new businesses fail because they run out of cash. In fact, results collected by Investopedia show that two of the four most common reasons why small businesses fail involve cash-flow problems—mainly insufficient budgeting and a lack of sufficient capital. 

For Daniel Lambert, CEO of PathologyWatch, exploring various forms of capital was pivotal to startup success. “Look at raising from different asset classes: private equity, growth equity, sovereign wealth funds, PE firms, family offices and cash-rich investors. There are many sources of capital that are often overlooked,” he advises. 

Once you’ve formalized your vision and bolstered it with a satisfactory cash flow, it’s essential to hire key players who share your vision and offer expertise in fundamental skills. 

Hire people with office management, business, and legal expertise.

You may be an expert at differentiating herpes zoster from acne vulgaris, but do you know the latest HIPAA compliance requirements or how to handle payroll tax? Your staff will need both clinical and nonclinical support, so one of your first steps should be hiring those with hands-on management, legal structure, and compliance experience. 

“Choosing the right legal structure for your medical practice is one of the most important business decisions you’ll make,” says Jack Wolstenholm, head of content marketing at LeverageRx. “Deciding whether to establish a sole proprietorship or a more complex legal structure must be thought through wisely. It requires calculating both the costs and benefits to your practice, and factoring in your risk tolerance to liability.”

Staying ahead of the game in one of the most highly regulated industries could mean the difference between staying open or becoming a statistic. 

Establish your specialized services.

What is your specialty? For instance, if you’re setting up a practice in an area with a year-round sunny climate, specializing in skin-cancer treatment could be your focus. If you are unsure, check out practices in the area. Remember that while you are providing healthcare, you are also a small business owner. That means keeping an eye on your competitors. To narrow down prospective areas, call some practices to check on waiting times for an appointment for new patients. If the wait time is longer than two weeks, there’s plenty of room for another doctor. 

“Public demographic information can tell you about future growth in different communities,” say experts at The Dermatologist. “If you expect to attract patients from many different communities, look at traffic flow to make sure your practice is easily accessible.” 

Your expertise will help build your patient base, but it’s the mindset of a small business owner that will help keep your doors open for business.

Start by investing only in the essential equipment and space.

With this new cash flow, it’s tempting to overspend during the initial stages of business development. Before you schedule the interior decorator, look at your financial overhead with a long-term perspective. This endeavor is going to put your ability to maximize cash flow to the ultimate test. 

One area where you can minimize overhead expenses is usable physical space. Experts recommend starting small and leaving room for expansion. For example, when Jerome Obed, DO, a board-certified dermatologist who runs Broward Dermatology and Cosmetic Specialists in Fort Lauderdale, Florida, opened his new practice, he only prepared two out of his four exam rooms. When his patient numbers increased, he furnished the remaining two exam rooms in his office. 

The process of gradually building up at the same rate of acquiring new patients applies to investing in equipment as well. When you’ve determined your specialty, those are the pieces that should be purchased first. To control startup costs, we’ll discuss later the options of outsourcing certain functions to free up funds to purchase essential equipment.

Along with medical equipment, your IT system is an essential part of your office operation—and one of the most expensive. “You’ll need a practice management system for demographic information, scheduling, and billing, and an electronic health record (EHR) system for patient information,” say the staff at The Dermatologist.

Consider outsourcing functions.

Using a third-party service for billing or payroll tasks is a common practice for medical offices of all sizes. Services like PathologyWatch can manage both the business and technology aspects of digital pathology technology. That means your startup can offer all of the services you need to grow your new practice without having to invest in your own laboratory equipment and lab staff. 

You may not know what lies ahead when you open your own dermatology practice. But by talking with people who share in your journey for a private dermatology practice and following these five proven tips, you can learn ways to minimize risk while maximizing opportunities for growth.

Funding led by Neue Fund and BioVentures Investors to extend pathology AI research and allow strategic life science and AI investors into the round.

SALT LAKE CITY, December 16, 2020—PathologyWatch has announced $2M in extension funding from Neue Fund, BioVentures GmbH, Lateral Capital, BeniVC and Sky Ventures. PathologyWatch will direct the capital towards digital dermatopathology development and scaling the laboratory system to extend pathology AI research and to allow additional strategic life science and AI investors into the round. 

Following $5M series A funding, the $2M extension brings the total capital PathologyWatch has raised to $7M series A. The company has raised over $10M total capital to date. The extension funds will bolster operations to facilitate larger clients and continue progress in developing innovative technology, including the extension of artificial intelligence research for various cancer lines.

“It’s thrilling to see our year-over-year volume triple,” said Dan Lambert, Pathlogywatch CEO and cofounder. “With that increase comes the demand to improve algorithms, build out operational volume, increase lab capacity and augment staffing to ensure our clients achieve optimal patient outcomes.”

PathologyWatch specializes in providing dermatology clinics with fully interfaced EMR reporting and 24/7 access to digital slides. In addition to more efficient workflows and faster turnaround times, clients have direct access to leading dermatopathologists.

“In the digital dermatopathology universe, PathologyWatch stands apart with cutting-edge technology and services designed to improve the human experience,” noted Cofield Mundi of Neue Fund. “Our confidence couldn’t be higher in their ingenuity and devotion to advancing the digital dermatopathology landscape.”

About PathologyWatch

PathologyWatch is the groundbreaking leader of digital dermatopathology services. Through these services, dermatology clinics, hospitals and laboratories can improve operational efficiency by speeding up workflow and enhancing patient outcomes by utilizing the PathologyWatch expert professional team and partner laboratory services. This can facilitate best-in-class reads and, in some cases, enable additional revenue to the practice by in-housing pathology. With an intuitive and easy-to-implement digital pathology solution that includes access to top-tier dermatopathologists and a streamlined clinical workflow that interfaces directly into the EMR, PathologyWatch brilliantly combines state-of-the-art technology and clinical decision-making to deliver unprecedented patient care.

View the original release.

Example of a bad online review.

Pretty harsh, isn’t it? Although this review isn’t referring to any of our medical clients, it illustrates the daily challenges healthcare providers face in the digital space.

Online patient reviews can either make or break a dermatology clinic’s reputation and practice. According to the Pew Research Center, 77 percent of consumers say they use online reviews as the first step in finding a new physician. During that search, studies found that only 14 percent of consumers would consider using a business with a one- or two-star rating.

In other words, online reviews are a big deal. A study by Dimensional Research found that 90 percent of people who read online reviews admitted their buying decisions are influenced by positive reviews. And 86 percent said their decisions are impacted by negative online reviews. 

How does that affect a business, lab, or dermatology clinic? A Moz study found that a business will lose about 22 percent of potential customers from one negative online review that appears in an online search. Two negative search results can double the loss of potential customers. “Have four or more negative articles about your company or product appearing in Google search results? You’re likely to lose 70% of potential customers,” says Dan Hinckley at Moz. 

Be proactive in protecting your brand. When negative reviews appear online, don’t ignore them. Instead, take it as an opportunity to show you care about your patients. Here are four ways to do so. 

1. Invest in reputation management.

Most doctors don’t invest much time in reputation management or tracking online reviews or searches, but they should. Here’s why: 

Improved SEO. Search engines prioritize sites that have frequently updated, relevant, and uniquely worded content. This means your online reviews (both good and bad), engagement, and comments can also improve search results. So encourage your patients to share their experience online and be engaged with a response. 

Credibility. We want to project a positive image, and tracking online reviews is a great way to ensure you are connecting with your patients. But a smattering of negative reviews—and how you respond to them—can actually help build credibility in your practice. Studies show that 85 percent of users trust online reviews as much as they trust personal recommendations. By welcoming feedback and creating an online “community” through comments, you are building a trustworthy and credible brand. 

“Online reviews matter,” explains Inc.com contributor Craig Bloem. “And that’s why you need to create and maintain a process that encourages your customers to leave reviews, monitors the reviews they leave, and improves any negative reviews you might receive.”

2. Determine if the response should be public or private.

As shown in the above example, a patient will use an online platform to vent frustrations for a variety of reasons. The important thing is to offer a public apology. “Remember, while you are exchanging messages with the reviewer, other people are reading your comments and wondering whether or not to visit your practice,” explain the staff at My Practice Reputation. 

Your medical practice can fall victim to any number of criticisms: “The parking was bad.” “Your office was hard to find.” “The waiting room was too noisy.” In those cases, a public apology and a reassurance that your patients’ experience at your office is a priority can be handled online. But if the reviewer is referring to the care he or she received—regardless of whether or not you feel the complaints are legitimate—you’ll want to be more discrete. Extend a public apology, reiterate how important it is for your team to deliver excellent patient care and that you welcome feedback, and invite the reviewer to reach out to your office to discuss what happened.

3. Keep the conversation solution-oriented.

If the patient contacts your office, quickly pull the file and review what happened from the patient’s perspective. Then put your office to the test: How was the patient greeted? Did the office staff use discretion when verifying personal information? How was the exchange between the doctor and patient? Why did the patient leave feeling frustrated? If possible, encourage the patient to describe his or her experience to uncover the breakdown in the situation. Then ask the patient what you and your staff could have done better.

“Most patients who leave negative reviews just want to feel heard,” says Erin Kitchen at Medical Economics. “You can even gain real insight and grow from their feedback!” For example, use feedback to improve office processes. Or allow more time between appointments to ensure patients have plenty of time to ask questions. 

Don’t ask the patient to remove the negative review. In some cases, the patient will volunteer to remove the negative review or add a follow-up post that the situation was resolved.

4. Consider legal help for extreme cases.

Fake reviews happen. That’s why safeguarding your online reputation is essential. If you discover the online review was posted by an aggressive competitor, for example, or by people who aren’t verifiable patients but post defamatory comments or reviews, you can demand the reviewer remove the post. 

Unfortunately, despite our best efforts, some situations can’t be resolved without involving legal support. In those cases when an online reviewer refuses to take down a false review post, legal experts suggest taking the information you have about the online reviewer and consulting with an attorney. The attorney will send a letter alerting the reviewer of legal action should he or she refuse to take down the posted review. As a final resort, your attorney can notify the website, website host, owner, and internet service provider. 

Keep in mind that the process of working with a legal team or the online platform can be slow. For quicker results, continue encouraging patients to share positive (and recent) reviews about your patient care and leverage that positive feedback. 

Online patient reviews can literally change the way customers view your dermatology practice. By figuring reputation management into your marketing efforts and treating a negative review as a marketing opportunity, you can tap into valuable insights on ways to better connect with potential customers and offer the best patient care possible.

As medical reimbursement continues to fluctuate, practicing smarter instead of harder or longer becomes even more critical for dermatologists. Running a thriving dermatology practice demands that business owners continually examine ways to increase staff efficiency and maintain patient satisfaction. The average staff-to-dermatologist FTE ratio is between 5:1 and 6:1—but, when they are seeing 40 to 50 patients a day, dermatologists still often take work home with them.

Meanwhile, a recent study indicates that only 30 percent of Gen X dermatology patients are “completely satisfied” with their provider. By cross-training your staff, maximizing your EMR, being prepared, and partnering with the right dermatopathology lab, you can discover ways to maximize your staff’s time to work smarter while maintaining or improving patient satisfaction.

Cross-Train Your Staff

Traditionally, clinic staffing has included front-office staff focused on checking patients in and out of the clinic, collecting payments, and scheduling appointments. Selecting composed and capable individuals to fill these positions is critical since customer service is the source of over 95 percent of patient complaints. Medical assistants and back-office personnel are trained to assist in patient rooms, handle clinical questions, call back biopsy and lab results, and manage clinical supplies.

However, many clinics now find it more useful to train staff to perform both front- and back-office tasks. That way, if someone is out sick, needs to take time off, or requires a helping hand, any staff member can step in to assist. Some clinics have a dedicated float person who can call in prescriptions, answer phones to schedule appointments, or triage patient questions. Having someone who is clinically savvy cover the front desk can increase efficiency by knowing when to add or overbook patients without requiring other staff or the physicians to make the right call.

Maximize Your EMR

It can be hard to invest the extra time setting up an EMR effectively with templates and favorites with a busy schedule. Since up to 80 percent of dermatologists use EMR systems, talk to colleagues to get their suggestions. While you’re at it, see if they have any electronic templates or lists of commonly used medications that your staff can enter as favorites. If no one you know is using an EMR, try joining a dermatology Facebook group—such as The Board Certified Dermatologists or Business of Dermatology—where you can ask questions or search old posts.

Some clinics have both a dedicated scribe and medical assistant in the room during patient visits. This way, the scribe can accurately document the appointment, allowing you to bill appropriately for the service level. Meanwhile, the MA can make biopsy preparations, take photographs, or fill out paperwork for you. Consider having staff start patient notes before the patient arrives so they can ask directed follow-up questions and give a more useful summary before you see the patient.

Some EMRs now offer the ability to print requisitions and labels. Taking advantage of this feature can save staff from handwriting forms and labels, which is slow and prone to error.

Time invested up front can save hours of time for the clinical staff, who have to do less manual input and can spend more time counseling the patient than charting. Suppose your templates or patient handouts contain all the prompts for counseling. In that case, the MA has a template to follow, so patients consistently receive all necessary information instead of relying on their memory to counsel them. By allowing them this one-on-one time with patients, medical assistants often find more meaning in their job and create better relationships with them, leaving you time to catch up on notes or fit in an urgent visit.

Be Prepared

If a patient needs a biopsy, rescheduling the patient will cost staff time setting up a new appointment, checking in again, and rooming the patient. With no-show rates as high as 30 percent in the United States, it’s essential to promptly ensure your patients receive the care they require. 

Suppose your biopsy tray is already set up and ready for a shave biopsy, with appropriate tools and paperwork ready to go. In that case, you can perform the biopsy while the patient is already in the room and disrobed. Consider having your rooms organized with easily accessible supplies grouped by types of procedures. If appropriate, preprinted patient labels can help save time during a busy clinic. You can also slap a label on patient paperwork rather than handwriting the label.

Having tear-off sheets printed for follow-up appointments or frequently recommended over-the-counter treatments can also save staff time and money. Printing in bulk at your local copy store or an online resource can help you save on supply costs like paper and ink, preserve staff time, and become more organized with frequently used handouts at your disposal.

Find the Right Dermatopathology Lab

Fast turnaround times combined with quality reporting will save you and your staff time. Receiving timely reports helps patients get results and treatments more quickly, decreasing patient calls and increasing patient satisfaction by up to 8 percent.

Partnering with a lab that offers an EMR interface speeds up the process even more. Reports automatically interface with the specific patient’s chart, eliminating the need to scan in paper faxes or sort through pages of e-faxes, providing the staff time to address other tasks. Providers can review photographs and results simultaneously and process clinical decisions more quickly.

In addition, having access to your digital biopsy slides can improve your clinicopathologic correlation on the case and result in the most appropriate clinical diagnosis and subsequent treatment.* It also allows the dermatologist to review the slide in real-time with the dermatopathologist. When needed, expert consults can be processed in-network, saving time in the long run by delivering precise diagnoses and reduced billing issues. Also, by allowing your dermatopathologist to contact you directly, they can more easily reach out when additional correlation is needed on a case or notify you about melanoma diagnoses.

With 12 million skin lesions biopsied in the United States every year, the demand has never been greater for labs to demonstrate competence and value to the dermatologists they serve. Joining forces with a full-service dermpath lab like PathologyWatch provides all these benefits by giving quality reporting, fast turnaround times, digital access to your slides, and clinicians who care about each case.

Increasing staff efficiency while maintaining patient satisfaction is key to the long-term success of dermatologists. Take proactive measures to cross-train your staff, make full use of your EMR, prepare for every case, and partner with a capable dermatopathology lab to maximize your staff’s time and get the most productivity out of your clinic. 

*Images are not intended to be used for the diagnosis or treatment of a disease or condition.