For practice administrators, a fair assessment of their jobs may include "jack of all trades" since their job descriptions can include a wide range of responsibilities. Duties range from accounting, information technology and clinical operations to negotiator, human resources, marketing and finance. The larger the practice, the more support the administrator may have whereas in a practice with only a few physicians, the administrator may have to perform all of those jobs. A practice administrator must not only have people skills, but also be skilled, educated and experienced in a wide range of methodology and be willing to meet the ever-changing demands of the health care environment.
"The practice manager affords the physicians the opportunity to do what they went into the practice of medicine for—to take care of their patients," said Donna W. Klutts, a Registered Health Information Technician (RHIT), who has been the practice administrator for West Tennessee Bone & Joint Clinic in Jackson for the past eight years. She also served as West Tennessee MGMA president for 2006 and 2007. "The practice manager oversees financial management, human resources, planning and marketing, information management, risk management, organizational dynamics, and business and clinical operations on a day-to-day basis, as well as looking to the future."
"A physician is trained to see patients and not to run a business," said Tom Reed, publisher of West Tennessee Medical News and a practice management consultant. "By hiring a manager to run the business side of the practice, the physician has the time to devote to what he or she is best trained for— the practice of medicine and seeing patients. In a small practice (solo to three doctors), up to a large practice, a manager can take the business load off the doctors. The manager will take care of personnel issues, purchasing, paying bills and all the many details involved in running a complex and often multi-million dollar business."
"The practice executive is the operations and financial manager of the practice, accountable to many, i.e., physicians, consultants and staff," Klutts said. "Physicians entrust the responsibilities of managing a practice to this professional. This person must have merits of ethical character, hard work, frugality, and honesty. Finding the right administrator for a private practice is often much different than finding one for a practice that is part of a larger system. A savvy and experienced administrator understands that the risks and rewards of a private medical practice aren't the same as those of a practice that's part of a large health system."
"An administrator usually shares the same independent spirit, in varying degrees, as the physicians with whom he or she works, and acknowledges the realities of the business environment in which the practice operates," said Klutts. "For example, in a highly regulated state, the skills and experience of dealing with managed care companies might be critical to the success of the practice, whereas in a rural area, a key factor might be how well the administrator fits into the community."
Educational backgrounds for practice administrators vary from high school graduate to PhD, Klutts added. "Given the complexity of the health care environment, the rapid pace of change and the increasing specialization of the field, the practice executive must have an informed network of colleagues and organizations."
For some practices, the use of a consultant can at times be beneficial. "A consultant often brings in a different set of skills and objectivity to the situation," said Reed. "The consultant can support the full-time manager and help them through a project."
"I find that consulting relationships work best when the requesting office is specific about an assignment, i.e. start up of a practice, benchmarking, reviewing insurance contracts, compensation modules, or a general practice checkup," Klutts said. "Requesting clear and concrete deliverables and committing yourself to the project makes for helpful and successful outcomes. Consulting with attorneys, insurers, underwriters, financial professionals, architects or even interior designers are a regular experience in the practice executive's business day."
Since an administrator operates in an environment that is facing change itself, he or she must be prepared to face not only the issues of today, but those of tomorrow as well. "All practices face a world of reducing reimbursements (lower income), increasing costs, increasing regulations, increasing red tape, difficulties in physician recruiting, changing patient mix to include more Medicare, TennCare and uninsured patients," said Reed. "Information technology continues to be the trend in medical practices. Electronic medical records and electronic billing are tools to make the business more efficient and reduce costs."
"Practice managers will be faced with the critical role of implementation and continued updates of information technology and networks, biotechnology and the new legislative role of the practice executive," Klutts said. "I don't think anyone started in this profession knowing that they would need to have relationships with their senators and representatives. Every practice administrator should be planning for the future, staying compliant and above reproach."
Reed explained that the job of practice manager will continue to become more of a profession with higher trained individuals capable of managing change. The quality of the managers, their education, and skills are higher than 20 years ago when managers were typically secretaries promoted from within, he said. "The office administrator is better educated and trained today. They are more of a key player in the business and more is expected of them."
"Our workforce has four generations with differing workplace knowledge, skills and job satisfaction," Klutts added. "A manager's ability to recognize and meet different generational expectations will be critical to the success of medical group practices. Picking the ideal administrator is part science, part art. How do you know you have made the right choice? You recognize it in the success of the group and in the implementation of the strategic vision of the practice."