Mental Health Clinic Case Study
We Grow Profits
Independent Mental Health Clinic with 1 million in annual sales and 5% EBITDA Margin ($50,000)
SITUATION
This clinic with seven therapists and four support staff was barely making ends meet when we met them. The business profit (or lack of profit) left little for the two owners beyond commission they earned as therapists and did not equal the amount of risk that goes with owning a business.
CHALLENGE
As with many owners who are working in rather than on their business, there was little time left to manage the company at the end of a long work day as therapists. Due to the lack of leadership for the business, staff members and therapists individually developed their own processes and a culture that was not conducive to success ensued.
SOLUTION
After analysis and meeting with the therapists over a period of time the following projects were completed:
- An experienced office manager was needed to restructure the operations and staff culture.
- Support staff was reduced to three vs. four.
- The therapists assisted with handling tasks and communication with patients.
- A new practice management and EMR system was put in place for better efficiency.
- Regular staff meetings were implemented to build a better team environment.
RESULTS
Increase of Revenue: $1,100,000 annually over the next 12 months.
Annual Profits: Increased from $50,000 to $143,000 annually.
Increase in Net Return: After service fees were deducted ($22,000) an increase in gross of $93,000, net increase of $71,000 compared to the previous year was realized.
Growth Point Partnership Mission Statement
Core Values:
Profit growth is a good and valued goal.
Teamwork is the only path to true success.
Measured, accountable, smart growth is why we exist.
Your success is our success.