As owner of a practice, you should know "everything"

Practice Pointers. By Karen S. Schechter, AMNews contributor. April 17, 2006.

PRACTICE POINTERS

Answers to questions about the business side of your practice

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Question I am the sole proprietor of a busy medical practice with four employees, including an office manager. The practice seems to run smoothly. But my office manager and I never seem to get a chance to go over the numbers or other aspects of the practice unless we are trying to put out a fire. This is due in part to my busy schedule but also because the office manager seems reluctant for me to be any more involved than I am. What should my role be?

Answer: The answer to your question is easy: You are the owner and you should know everything.

"Everything" includes financial and operational information. It includes knowing your employees and understanding the practice's relationship with outside parties, including but not limited to your bank, accounting firm, third-party payers, payroll company and others.

You need to know this not only because it gives you a general sense of your practice's financial health. You also need to get this information to protect yourself against any employee who might be defrauding you or embezzling from the practice. It's a lot more difficult for someone to steal if you're watching the cookie jar.

The key is to gain and maintain this knowledge without being a micromanager, stifling the creativity and authority of your office manager and staff.

So let's talk about an approach to obtaining this information in an effective and efficient manner, so all of the key players in your practice are satisfied -- especially you.