In this episode, host Aaron Fritts is joined by Teri Yates, CEO of Accountable Physician Advisors, who offers essential guidance for successfully establishing and managing Office-Based Labs (OBLs).

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SHOW NOTES

Teri started a consulting company after working as a quality and risk officer at a radiology practice for 18 years. As the company rapidly grew, she has worked with many different physician practices and specialities.

We start off the discussion by identifying key pitfalls that Teri sees in OBL ventures. First, it is common for physicians to conduct inadequate due diligence about referral sources, which can be a barrier to effective marketing and patient acquisition. Also, it is common for founders to lack a detailed revenue model or a plan for the business. Oftentimes, they will underestimate the capital needed to start the OBL and lack a clear idea about the types of procedures and patients they are catering towards. Another pitfall is not realizing the amount of time investment required. Teri estimates that approximately 10% of a physician's time will be needed to manage the OBL and it is important to take this into account. Finally, a common error is initially hiring individuals not qualified to be administrators, such as family members or trusted individuals.

Teri also highlights some of the major reasons physicians consult her company. These challenges often revolve around "people problems," encompassing issues related to both administrative difficulties and employee management. Staffing and retention problems, leading to a significant turnover of employees, are common concerns. She underscores the importance of addressing issues related to physicians themselves, emphasizing that partners must set the tone for the culture within a company. Patient turnover efficiency in OBLs is also a recurring issue. Teri's advice for this issue to closely follow a few patients throughout their entire visit. This will most likely uncover redundancies in the patient experience, many of which the staff might already be aware of, but hesitant to communicate to leadership.

As Teri reflects on her experiences, she notes that it typically takes 6-9 months to fully construct and operate an OBL. A comprehensive understanding of healthcare regulations in each state is crucial in the initial development stages. Teri notes that she has seen more vascular surgery and interventional cardiology practices arising in the OBL space, and she predicts a trend toward multi-specialty practice OBL groups in the future.

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RESOURCES

Accountable Physician Advisors:
https://www.accountablephysicianadvisors.com/