Three Common Risks:
Business, Financial, Structural
Reading Time - 4 min
Why you should spend 4 minutes reading this:
Understanding why you'll go out of business is the best way to make sure you never do
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There are three major types of risks all businesses face.
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Business Risk
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Financial Risk
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Structural Risk
Business Risk:
This is the risk that your practice will provide a service to patients and the cost will exceed the revenue.
Financial Risk:
This is the risk that your practice will run short on cash and that shortage will increase your business risk.
Structural Risk:
This is the risk that an outside force (ex. the government) will make a change that increases your business risk.
In the long-run, your success stems from your ability to innovate on business risk. In the short-run, you may find yourself neutralizing financial risk or structural risk to free up your future resources to outpace the competition.
Within healthcare:
Structural risk is inherent in the industry. It will be hard to eliminate this slow-moving risk but here is a playbook on ways to mitigate it. Also, if you develop an agile organization, you may be able to benefit from structural shifts.
Financial risk is likely the easiest to eliminate, as a practice/clinic, you should consider making this a priority. Here's are some options to eliminate the risk.
Business risk will define your long-term success. Cost-effective care, coupled with premium offerings and a sound approach to contract management will get you going in a good direction. Here's a playbook on ways to decrease your business risk.
As you read through these articles and run your business, ask yourself, does this reduce my business risk, structural risk or financial risk?
With time, your ability to identify risk will improve. Once you identify it, eliminate it and capitalize on it through strong prioritization frameworks.
If you would like to understand the biggest risks you're facing, fill out the form below.
High-level actions you can take based on this article:
1. Understand your different risks
2. Develop a roadmap to eliminate/mitigate risks
3. Monitor your risks as market forces change
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