ADVISORY e-ALERT     July 29, 2010
 
Advisory Law Group, a Professional Corporation
 
 
                                     
 
AVOIDING THE STALL
 
 
It's likely that you're familiar with the term "glass ceiling," used to describe the situation in which systemic factors within an organization hold down women and minority group employees from advancing beyond a certain level. 
 
Diagramed, a glass ceiling looks like this:
 
The Glass Ceiling
The Glass Ceiling

There's a far lesser known, but equally invidious, braking mechanism being applied to success - self applied - within many medical groups.  This mechanism manifests itself both at the group and at the physician level.  I call it The Stall™; it's the complacency that often comes from thinking that you've "arrived."
 
The Stall
Visit www.advisorylawgroup.com/videocasts.html
 
 
On the medical group level, consider the case of Community Group, not its real name, a physician group with an exclusive contract for hospital-based specialty services.
 
Community Group had recently signed the fourth consecutive three year renewal of its exclusive contract with Memorial Hospital.  Income was good; in fact, the group's physicians placed within the top percentiles on national and regional compensation surveys.  The group's leaders were content not to expand the scope of the group's services beyond that one facility.  In general, they believed that there was little for them to do in terms of management.  After all, they thought, they had built up a very profitable practice over the course of more than a decade, all in conjunction with their excellent relationship with Memorial.  As a result, the group leaders devoted their attention chiefly to patient care concerns alongside the rank and file members of the group.
 
Six months before the end of the renewal term, Community Group's leaders were completely stunned to learn that the hospital had chosen not to renew the deal.  The administrator announced that he would issue an RFP and that a group providing services at another local hospital had announced its intention to obtain the agreement.
 
Shifting to the individual level, The Stall manifests itself in several different ways.  One particularly common example is that of the physician who joined the group as an employee or subcontractor several years ago and who worked hard to become a partner or shareholder.  Once having attained an ownership position, he now believes that he deserves his position - in his mind, partnership does not involve a continuing obligation to deliver; rather, it is an entitlement position providing a cornucopia of rewards.
 
Like the glass ceiling imposed by others, the self-imposed plateau of The Stall prevents its victim, group or individual, from making further progress.  The solution is to find a way to break though that ceiling:
 
Avoiding The Stall
Avoiding The Stall
 
 
Avoiding The Stall
 
In broad terms, avoiding the stall requires close attention to the mindset that no single point on the progression from here to there represents the point of final destination.  The final destination is like the horizon - an idea (or an ideal) that is itself not accomplishable.  Accordingly, no matter what the accomplishment (the first contract with the hospital or the 10th renewal term, expansion to serve five facilities, board certification, partnership, $1 million annual income, etc.) it's but one stop on the way to a bigger envisioned future.
 
Business, for the group, and career, for the group physician, must be seen as a continuous process, not as a finite series of steps to completion.
 
For the Group
 
On the group level, this means that operating your business requires a continuous process of examining and resetting your strategic goals in synch with your changing observations of the competitive landscape, and then aligning tactics to accomplish those goals, only to then continue the process, reexamining and resetting strategy and realigning tactics.
 
In a sense, this is an expansion of Col. John Boyd's OODA loop (Observe, Orient, Decide, Act), with your evolving strategy used as a filter within the loop.  In Boyd's battle, the competitor who can consistently and effectively cycle through the loop faster gains an ever-increasing advantage each cycle.  The slower competitor falls farther and farther behind and becomes increasingly unable to cope with the deteriorating situation.  Each cycle, the slower competitor's actions become less relevant to the true situation.
 
Conversely, and as the impact of The Stall, unless your group continuously evolves quicker through the strategic operation of this process, your competitor (for this purpose defined as an actual competitor providing the same service, the hospital itself, or any other third party, depending on the circumstances) will get "inside your loop" - that is, in the original context of Boyd's thinking, the aerial dogfight, in a position to shoot you down.
 
For the Group Physician
 
There are Stall avoidance tools for the individual physicians within the group, both at the personal and at the medical group level.
 
Theoretically, at the personal level, a physician should adopt the never ending journey mindset in which each achievement is not a destination, but is a stepping stone in the direction toward the unreachable ideal.
 
That said, it is usually more effective for the group to impose tools on the individual physician than it is for the physician to police his or her own outlook.  For example:
 
Groups must develop a culture that drives home for each physician member the importance of a process of continual improvement at both the group and the individual levels.  This involves both intragroup education and training as well as "hands on" experience.
 
Groups can adopt seniority structures other than non-owner/owner.  For example, they can employ an equity model incorporating multiple levels of partnership class.
 
Groups can incorporate more physicians, both promising candidates for partnership and recently admitted partners, into the group's strategic planning process to infuse them with the sense that the group, and therefore they, must continue to make progress.
 
Groups can include partnership track employees/subcontractors as well as newer partners on the entity's other administrative committees to enforce this same, constant goal seeking mentality.
 
Conclusion
 
In addition to outsmarting your competitors, in order for your medical group to thrive, you need to release it from the impact of the internal brakes, The Stall, placed on its success from within, both at the group and the individual physician levels.
 
For information on how Advisory Law Group's process, The Strategic Group Process™, can help you accomplish this, contact Mark F. Weiss now. 
 
 
_____________________________________________
HEALTHCARE BUSINESS STRUCTURES:  WELL DESIGNED OR INSTITUTIONALIZED HAPPENSTANCE?
 
 

visit www.advisorylawgroup.com/videos.html 

 
 
 ________________________________________
RECENTLY PUBLISHED ARTICLES
Accountable Care Organizations:  Accountable to Whom?, published on AuntMinnie.com on June 10, 2010.
 
 
_______________________________________ 
MISSING COPIES OF EARLIER ISSUES OF ADVISORY e-ALERT?

 

Want to read past issues?
 
Did you delete (by mistake, of course!) a past issue of Advisory e-Alert and want another copy?
 
No matter the reason why, back issues of Advisory e-Alert are available from the archive.  Click here.
 
______________________________________
 
ADVISORY LAW GROUP, a Professional Corporation
 
Tel:  800-488-8014 or 310-843-2800
Fax:  877-883-0099
 
10940 Wilshire Blvd, 16th FL
Los Angeles, CA  90024
 
1227 De La Vina St
Santa Barbara, CA  93101
 
The materials presented in this Advisory e-Alert are educational only and are neither legal advice nor a substitute for it. Advisory e-Alert presents a general discussion which may or may not apply to your particular legal or factual circumstances. The distribution of Advisory e-Alert is not intended to create, nor does it create, an attorney-client relationship. Please do not send us confidential information without receiving explicit authorization from Advisory Law Group to do so. Do not take or avoid taking any action as a result of the materials presented in this e-Alert without first obtaining legal counsel.   
 
2010 Advisory Law Group, All Rights Reserved
Let Us Know What Business/Legal Issues You'd Like to See Addressed in A Future Issue
 
Warning Sign
 
 
 
In This Issue
Avoiding The Stall
Videocast: Structured Business or Institutionalized Happenstance?
Recently Published Articles
The e-Alert Archive
Hijacking the ACO: A Teleseminar
Complimentary Copy of 2010 Update
The Immediate Leader Experience
Mentor Program
The Wisdom. Applied. Blog
TELESEMINAR:
 
WHAT YOU MUST KNOW ABOUT THE ACO
 
 
The chances are great that a hospital administrator is scheming to control your financial future through an Accountable Care Organization.
 
Learn what he or she has in store for you, and what you can do to to hijack the process.
 
Date:  August 18, 2010
Time:  12:00 p.m. PDT
Cost:  $97
 
Contact us at request@advisorylawgroup.com to register. 
 
________________
 
 
DOWNLOAD YOUR COPY OF THE ALG 2010 ANESTHESIA BUSINESS UPDATE 
 
 
 

Whether you're an anesthesiologist or another hospital-based or office-based specialist, there's tremendous value waiting for you in your complimentary copy of Advisory Law Group's 2010 Anesthesia Business Update. 

 
Click on the image below to access the download page.
 
ALG's 2010 Anesthesia Business Update
 

 Follow Us On Twitter - twitter.com/advisorylawgrp

 
 
THE IMMEDIATE LEADER EXPERIENCE™ 
 
 
 

You're a physician who wants to form a medical group and, among other things, subcontract with or employ other physicians, enter into exclusive contacts, obtain significant stipend support money, create related entities to increase protection and the like. And you want to come up to speed on all of this immediately.

Or, you're the new leader of an existing group with complex practice and business operations -- you need to understand how to master the group's organizational, operational and leadership issues -- and you need to be brought up to speed immediately.
 
After having regularly dealt for many years with physicians in both of these contexts, we've designed a process to deliver immediate results: The Immediate Leader Experience™.
 
The Immediate Leader Experience™ takes place over a weekend in Santa Barbara, California and includes two nights accommodation at the Four Seasons Santa Barbara Biltmore Hotel. 
 
In two short days, you'll be entirely up to speed, totally prepared and confident.  You'll be armed with tools and sample documents.
 
Due to the nature of this program, admission is upon interview only -- there is extremely limited availability.
 
For further information on The Immediate Leader Experience™ follow this link.  
MENTOR PROGRAM 
For information on Mark's mentor program, click on the following link:  The Advisor Program.
 
________________
THE WISDOM. APPLIED. BLOG
Follow this link to Mark's blog, Wisdom. Applied.
 
________________
ALL ABOUT ALG
 
Join Our Mailing List