In today’s world of changing reimbursement rates, ongoing regulation shifts, and high-cost healthcare, organizations must be able to grow profitably without increasing expensive internal operations. DRUGSCAN, a leading toxicology lab based out of Pennsylvania, started taking a deeper look at current and prospective customers to determine which ones are truly revenue generating and which could end up actually costing more money to manage than they are worth.
“When we look at profitability from a lab perspective, it’s important to remember the external pressures on the industry,” said Mike Rominiecki, Senior VP of Business Development for DRUGSCAN, while speaking at the Healthcare Sales + Growth Summit. “Understanding the impact of reimbursements, PAMA, and managed care will continue to make calculating profitability a challenge for labs, especially smaller labs.”
At DRUGSCAN, the team typically looks at three cost components to determine profitability: insurance, test mix, and premium services. Then, the team can calculate the profitability of a customer account by comparing these ‘revenue drivers’ against expenses and industry pressure points, such as reimbursements and external competition. The DRUGSCAN team now leverages a holistic healthcare CRM platform to help track profitability, as it provides:
DRUGSCAN set up an internal review and approval process for new accounts to help determine profitability on the front end before the customer was even live. This process was previously driven by email notifications and chains, which took up to three days to approve. With their CRM system in place, new account approvals are now completed within 24 hours of the request – increasing internal efficiency by 200%.
“One of the biggest questions we receive is how to align sales compensation plans with company growth goals,” said Rominiecki. “We continuously educate reps on how to recognize possible red flags in new customer accounts and understand cost drivers. That being said, we do have a clear compensation plan in place that includes deductions for at-risk situations, such as self-pay patients or IOP/processors, which can drive down profitability.”
Today, DRUGSCAN is leveraging their healthcare CRM platform alongside a clear, company-wide profitability scale to proactively growth business.