Operational Excellence in Medical Aesthetics

A portfolio company sought to enhance its growth strategy and operational efficiency to improve its EBITDA growth.

Situation

A Portfolio Company (PortCo), backed by a private equity group, acquired a high-profile private practice in the field of plastic surgery and medical aesthetics, including a certified surgery center. New to the sector, PortCo sought to enhance the practice's growth strategy and operational efficiency. Despite a strong team, the practice's EBITDA growth was stagnant, necessitating an operational assessment. The practice's growth had plateaued, primarily due to an outdated management style that diminished accountability and staff motivation. A stark performance discrepancy among providers was also evident, with one provider performing at the 90th percentile while others lagged at the 25th percentile, creating an obstacle in expanding med spa services. 

Solution

BSM Consulting, a division of VMG Health, was engaged to conduct a comprehensive operational assessment, focusing on the patient experience from initial contact to post-care follow-up. The evaluation led to several key initiatives: 

• Efficiency Dashboard: Implement a dashboard to monitor key performance indicators (KPIs) such as provider productivity, revenue, and overhead expenses. 

• Staffing Improvements: Identify roles for a patient care coordinator and medical assistant to enhance patient service. 

• Wage Scale Analysis: Development of a new bonus structure and career pathing across the organization. 

• Leadership Development: Coaching for department managers and supervisors to refine processes and protocols. 

• Training and Development: Introduction of a teach-back method in training programs to solidify provider knowledge and foster a culture of accountability. 

• Career Pathing: Establishment of a three-tiered system for all positions to encourage growth and performance. 

Success

Implementing a culture of accountability has significantly reduced the need for micromanagement. The practice has undergone a remarkable transformation, with a unified clinical support team driving productivity, patient engagement, and retention. This cultural shift and development of standard operating procedures have resulted in a doubling of top-line revenue within two years, marking a significant success in the practice's transformation.