The Ultimate Guide to Hiring a Practice Admin
- Imran
- Jan 5, 2023
- 9 min read
Updated: Jan 6, 2023
Everything you need to know to hire a practice administrator or practice manager that will take your medical practice or dental practice to the next level. Keep reading to get a FREE DOWNLOADABLE JOB DESCRIPTION to hire the perfect administrator for your practice.
Practice administrators are some of the most underappreciated, yet critical, elements of medical care. The practice administrator is responsible for overseeing the financial, human resources, marketing, and operational aspects of the practice. Their performance in these areas can significantly impact the practice's financial stability, employee morale, patient satisfaction, and compliance with regulations.
Physicians have a reputation of being notoriously bad at business. They rightfully obsess over patient care, but gloss over the minutia of running a medical practice. That is where a practice administrator comes in handy!
Hiring that perfect fit for running your medical practice is no easy task. Our team has worked with hundreds of practice administrators, and we have seen first hand how different people impact the operations of the practice. We've created this guide to pull together the best practices and traits for the ideal healthcare administrator.
The Most Important Hire Your Medical Practice Will Make
Many people forget that medical practices are sizable small businesses. A 10 provider orthopedic medical group can generate a top line revenue of $15,000,000 while a single provider family practice physician is typically billing around $400,000 per year. Both represent significant businesses that require sophistication to effectively manage.
According to the Harvard Business Review, for every one physician there are up to10 administrative roles to support the physician from front desk to billing and everything in between. This creates a sizable overhead. Your practice administrator is the key to managing the full patient care journey from discovering your practice online, booking an appointment, registering the patient, and billing the patient efficiently.
This guide will cover:
What is a practice administrator? What does a practice administrator do day-to-day?
A practice administrator is responsible for the overall management of a medical practice. This includes:
A practice administrator works closely with the providers and staff to ensure the smooth operation of the practice and the delivery of high-quality patient care. People who thrive in this role will be very strong with technology, comfortable with a fast-paced environment, and very good at managing people.
The administrator title is not a uniform title across all organizations. Other names to reference the same role include healthcare administrator, practice manager, medical practice CEO or COO, Chief Administrative Officer, office manager, etc. While the official job title may be different, their roles are the same.
Financial Management:
The practice administrator or medical practice CFO spends a fair amount of their time on financial management and much of their time should be spent thinking about how to drive growth and revenue for the practice while maintaining phenomenal patient care.
Some key elements of the role include the ability to:
Develop and implement financial policies and procedures for the practice
Oversee budget planning and financial reporting for the practice
Manage billing and collections processes, including working with third-party payers
Negotiate contracts with payers and vendors
Monitor financial performance and identify areas for improvement
Being very adept at using practice management software reporting to uncover opportunities for improvement is incredibly useful. The ideal practice administrator should be very familiar with financial vocabulary and the toggles to drive financial metrics such as Days in A/R, Days Payable, Patient Yield, Gross Collection, etc.
Human Resources:
People management is one of the most draining elements of a practice administrator's day-to-day routine, especially in today's job environment. Hiring and managing staff is incredibly difficult and the great resignation did not make it any easier. In fact, healthcare job openings have reached a feverish 9.2% ... more than double the job opening rate of 4.2% from 2010-2019.
A practice administrator is often tasked with:
Overseeing the recruitment, hiring, and training of staff
Developing and implement policies and procedures for staff
Managing employee performance and conduct performance evaluations
Handling employee relations issues and conflicts
Ensuring compliance with employment laws and regulations
Unfortunately, healthcare staff is a pretty transient workforce and there are plenty of HR issues that occupy a practice administrators time.
Marketing:
Getting patients in the door on a consistent basis will determine if a medical practice continues to thrive or closes up shop. Medical offices tend to outsource marketing efforts because its confusing and they don't have the time to manage the effort consistently. However, having a strong grasp of marketing is a critical skill for a practice administrator especially if you're practice wants to keep growing. Some day-to-day activities include:
Developing and implementing marketing strategies to promote the practice
Coordinating promotional and outreach activities, including social media and community events
Developing and maintaining relationships with referring providers and community organizations
Operational management:
Toilet clogged? Ran out of supplies? Vendor triggered a HIPAA violation? There is no job too small and no practice administrator too big to handle these issues (Paw Patrol reference for those not forced to watch).
The practice administrator is typically the first person to address any and all operational issues at the clinic. This includes vendor management and contracting. It's the work that is not glamorous but needs to get done in order to have a functioning medical office. Typical operational elements for a practice administrator include:
Developing and implementing policies and procedures for the practice
Overseeing the scheduling of patients and staff
Ensuring the practice is in compliance with all regulatory requirements
Managing the maintenance and upkeep of the practice facilities and equipment
Coordinating the purchase of supplies and equipment
There is a lot to handle in a multi-million dollar facility with tens of staff members and the miscellaneous issues can be the most frustrating part of the job.
What qualifications should a practice administrator have?
Traditional qualifications in general are overrated. Is it necessary to have a bachelors degree if you've been managing a practice for many years? No. Does it help screen out potential duds so you are not interviewing ad nauseum? Yes.
Many folks strive to get a masters or bachelors in healthcare administration...but we don't think its necessary or all that common. A bachelors degree is the most common trait across practice administrators. Others strive to get a Certified Medical Practice Executive (CMPE) certification via the American College of Medical Practice Executives. While these stamps of approval show someone who is dedicated to the field, there is simply no substitution for real world experience. Someone who has grown through the ranks and continues to progress is always a desirable prospect. Good candidates typically have spent time in medical billing, operations, front desk supervision, and IT.
Typical qualifications include:
Bachelor's degree in business administration, healthcare administration, or a related field or CMPE
5+ years of experience in healthcare administration, with at least 2 years in a supervisory role managing multiple departments
Strong understanding of healthcare revenue cycle management, billing, and credentialing
Proficiency in financial management and budgeting
Excellent proficiency with Microsoft Word, Excel and Powerpoint and/or Google Suite
Strong leadership and management skills
Excellent communication and interpersonal skills
Strong proficiency with medical terminology and optimizing the use of electronic medical record and practice management systems
At the end of the day, someone you can work with who is willing to roll up their sleeves, is incredibly well organized, and has good people skills will trump any degrees or certifications.
Where should you hire a practice administrator?
We always recommend to start the hiring process internally. Are there any potential candidates that have been working at the medical office who have proven to be exceptional performers?
I have personally seen qualified candidates get passed up for the practice administrator role just because they have not held the title before. Do an assessment and see if there are any people that you really rely on and trust. This is an important role and trust is absolutely critical.
If you've exhausted the internal well, its time to start looking externally. Some places that have generated a lot of success include:
Professional associations by specialty such as the American Association of Orthopedic Executives (AAOE) or the American Academy of Dermatology (AAD). These organizations usually have members only forums where people post job opportunities and are a good source for getting experienced hires.
Online forums such as our very own at ThePracticeAdministrator.com/forum are a good place to post for free and generate interest. Be careful about making sure people reach out to you in an effective way because you don't want your email being spammed.
Indeed, Talroo or ZipRecruiter are still the most common places that people search and make job postings. If you rely on these methods, it's important to distinguish yourself from the crowd. A lot of people are dropping resumes to whatever posting has even marginal appeal. They may not be the right candidates. We recommend that you have screener questions in place to make sure you are not getting spammed with resumes that are not even remotely qualified.
The most expensive option is to use a recruiter. There are a ton of healthcare recruiters out there such as pmrecruit or Odell Medical. Find someone you get along with and make sure your job description is on point.
There are many other job boards and recruiting sites out there. Wherever you post, make sure you have a defined process and point person leading the hiring charge, vetting resumes, and reaching out to candidates. I can't tell you how many practices I've worked with who have missed out on the right candidate because they were not timely in their response.
What is an example job description for a practice administrator? (Download for FREE)
ABOUT US:
[ABCD Medical] is a premier [family practice] group in the [Chicagoland] area. We focus on providing the best care for our patients and have world class providers and medical staff. With state-of-the-art facilities located in [Crown Point, Downers Grove, and Morton Grove], we are dedicated to delivering exceptional, compassionate care.
OVERVIEW:
The Practice Administrator is responsible for the overall management and administration of the medical practice. This includes financial management, human resources, marketing, and operational management. The administrator works closely with the providers and staff to ensure the smooth operation of the practice and the delivery of high-quality patient care. People who thrive in this role will be very strong with technology, comfortable with a fast-paced environment, and very good at managing people.
DUTIES AND RESPONSIBILITIES:
Financial Management:
Develop and implement financial policies and procedures for the practice
Oversee budget planning and financial reporting for the practice
Manage billing and collections processes, including working with third-party payers
Negotiate contracts with payers and vendors
Monitor financial performance and identify areas for improvement
Human Resources:
Oversee the recruitment, hiring, and training of staff
Develop and implement policies and procedures for staff
Manage employee performance and conduct performance evaluations
Handle employee relations issues and conflicts
Ensure compliance with employment laws and regulations
Marketing:
Develop and implement marketing strategies to promote the practice
Coordinate promotional and outreach activities, including social media and community events
Develop and maintain relationships with referring providers and community organizations
Operational Management:
Develop and implement policies and procedures for the practice
Oversee the scheduling of patients and staff
Ensure the practice is in compliance with all regulatory requirements
Manage the maintenance and upkeep of the practice facilities and equipment
Coordinate the purchase of supplies and equipment
QUALIFICATIONS:
Bachelor's degree in business administration, healthcare administration, or a related field
5+ years of experience in healthcare administration, with at least 2 years in a supervisory role managing multiple departments
Strong understanding of healthcare revenue cycle management, billing, and credentialing
Proficiency in financial management and budgeting
Excellent proficiency with Microsoft Word, Excel and Powerpoint and/or Google Suite
Strong leadership and management skills
Excellent communication and interpersonal skills
Strong proficiency with medical terminology and optimizing the use of electronic medical record and practice management systems
INQUIRIES:
All inquiries should be directed to [your.email@thepracticeadministrator.com]. Please send a resume and cover letter.
If you want the word version, download by clicking the link below:
What interview questions should I ask a candidate applying for the role of a practice administrator?
Standard interview questions should of course be par for the course. Questions that cover skills, ability to handle adversity, resilience, and cultural fit are basics that everyone should incorporate. However, we've tailored a set of interview questions that may seem non-traditional...but we've seen be helpful to get the right candidate:
Describe a situation where you did not get along with someone. What was your response and how did you handle the situation?
What KPIs should we be tracking on a monthly basis for our medical practice? Why?
Walk me through the patient revenue cycle journey and where are there opportunities to improve.
What are ways to improve our practices revenue?
Describe the compensation structure and retention tools we can use to reduce front desk turnover
What steps can we take to make the patient care journey better (outside of the clinical setting).
What technology vendors do you have experience with to help our practice?
Do you have experience converting to a different EMR? Why did you make the decision you did? If not, why are you on your existing EMR?
How can we reduce insurance denials at our practice? Outline some strategies.
What would you present at the physician board meeting on a quarterly basis to show us how we are doing as a practice?
There are so many other questions you can ask that are specific to your practice or specialty...but the important thing is to be specific. Ask for examples and make sure their experience is relevant for you and your practice.
Hiring a practice administrator is hard but you're now prepared for the most critical step of your medical practices success
We covered a lot of topics when it comes to hiring a practice administrator to help run your medical practice or dental practice. Hiring the right person is absolutely critical in ensuring your practices success. At The Practice Administrator we are absolutely focused on providing as many resources as we can to help your practice administrator or staff really excel at their job.
If you have recommendations or additional insights, we encourage you post a comment below or create a section in the forum to discuss.
May the odds be ever in your favor!