Physiatry Practice Management Resources

Some physicians find the idea of advertising their practice distasteful, thinking that medical professionals shouldn't stoop to the type of promotion typically used by retail businesses.

But let's face it: You are running a retail business. Even if you're an excellent doctor, patients aren't going to beat a path to your office door if they don't know that your practice exists.

"You need newspaper ads, and they shouldn't peter out after the first few months," says Rebecca Anwar, a medical marketing consultant with The Sage Group in Philadelphia. "After all, Coca-Cola still advertises."

Advertising should be only one part of your overall marketing plan, however. As Anwar explains, "You first have to decide what your goals are, and how much you're willing to spend to promote your practice, including the cost of advertising." While the amount you spend will vary depending on your location and specialty, practice management consultants generally recommend budgeting no more than 1 percent of your gross revenue. Obviously, a rural practice with little nearby competition won't have to spend as much as a practice in an urban or suburban area with lots of other physicians.

The importance of advertising Advertising is clearly more important for new practices than established ones. But consultants say it's generally not as effective for primary care physicians as it is for specialists who deal with big-ticket conditions or procedures. Still, even primary care doctors should invest in advertising if they want their practice to grow.

Wherever they appear, display ads should include the physicians' names, the location of the office, the hours you're open, the services you offer, and the insurance plans you accept. Where to place the ad depends on a number of factors. Here are the choices:

Newspapers, TV, and radio. Newspaper ads are relatively expensive, costing between $150 and $750 per placement, depending on the size of the ad and the circulation of the paper. For new practices, consultants recommend running a display ad once or twice a week for the first few months. But don't expect miracles. As Charles Davant, an FP in Blowing Rock, NC, recalls, "When we hired a new associate a few years ago, we ran six weeks' of newspaper ads to announce her arrival. But they hardly generated any new business."

Jeff Denning, a consultant with Practice Performance Group in La Jolla, CA, says that's a common mistake for primary care practices: "Nobody cares that a new doctor's coming to town. What you need to emphasize is the unique training or skills that the newcomer brings. For instance, if she's the only FP in the area trained to treat a particular condition, that's something people may care about."

Denning adds: "In terms of cost-effectiveness, buying advertising time on television and radio is out of the question for most small to medium-sized practices in major metropolitan areas. In a small town in Kansas, however, doctors can probably afford to use both."

Yellow Pages. "All doctors should have in-column listings in the general alphabetical section and the 'by specialty' section' of the Yellow Pages," says Keith Borglum, a healthcare marketing consultant in Santa Rosa, CA. In-column box ads, which run about $100, are the next step up. Display ads can cost much more, and Borglum thinks they make economic sense only for large clinics, urgent care centers, or doctors offering expensive elective services.

Some metropolitan areas have specialized directories that might prove valuable. For example, Denver internist Judy Paley bought an ad in that city's Gay & Lesbian Yellow Pages. As she explains, "It identified us as accessible and nonjudgmental to a community that's very careful in picking healthcare providers."

In areas with several competing directories, picking the best one can be tough. As with other forms of advertising, try a display ad—in addition to the regular listing—for one year, and track how many new patients it produces before renewing. (Display ads are often discounted the first year.)

Welcome Wagon. Consultants advise against the discount coupons typically offered by restaurants, dry cleaners, pizza shops, or oil-and-lube stations. Those could cheapen your image. But some do recommend buying full-page ads in the local Welcome Wagon booklet that's distributed to newcomers in town.

Practice brochures. Although not technically an ad, a brochure lets you communicate directly with potential patients and can help promote the physicians in your practice as caring professionals. A brochure should include such basics as your location, office hours, profiles and photos of the physicians and professional staff, and their specialties. It should also include your e-mail address and your Web site URL.

To get a good-looking brochure, hire a professional graphic designer. The total charge to print 5,000 copies should run $500 to $1,000, depending on the quality, and $2,000 or more for a full-color brochure. Once you have the brochures, don't just leave them in your waiting room. Have your receptionist hand them out to patients, and give them extra copies to pass on to friends or relatives.

Whatever form of advertising you choose, don't just throw money at it and hope for the best. It makes no sense to spend money on advertising if you don't have some system designed to measure its effectiveness.

One easy way to track whether your advertising is doing its job is through your new-patient registration form. Most forms have a line that asks, "Referred by . . ." but you shouldn't just expect patients to fill it out. According to Denning, "A physician or staffer should personally ask every new patient, 'How did you hear about our practice?' Was it an ad, a brochure, a friend, or another physician, or word-of-mouth? Then probe: Which other physician? What ad? Which patient? Finally, designate someone to collect the information in a database that contains a category for each referral source." Analyze results each year when you're making your advertising buying decisions.