⚠️ For the best experience, please view this page on desktop.
📘
Specialty Clinic Profit Drop
A network of specialty dermatology clinics has seen profits decline over the past year despite stable patient volume. Management wants to understand what is driving the decline and how to address it. How would you approach this?
Your answer:
Your response will be saved to your account for you to review.
Answer Saved!
Oops! Something went wrong while submitting the form.
Your answer has been saved.
📋 Solution:
Specialty Clinic Profit Drop
Clarifying Questions:
• Is the profit decline occurring across all clinics or concentrated in certain regions?
• Has there been any recent change in reimbursement policies or payer mix?
• Is management focused on short-term margin recovery or long-term structural improvement?
Solution:
I would structure this around revenue per patient, cost structure evolution, and competitive or structural shifts.
- Revenue per patient
• Assess whether reimbursement rates have declined across key procedures.
• Evaluate shifts in payer mix toward lower-margin insurance categories.
• Analyze changes in service mix, such as fewer high-margin cosmetic treatments.
- Cost structure evolution
• Review physician and staff compensation trends, including wage inflation.
• Assess increases in supply, pharmaceutical, or equipment costs.
• Evaluate rent escalations or facility-related expenses across clinics.
- Competitive and structural dynamics
• Assess new entrants such as med-spas or tele-dermatology providers.
• Evaluate pricing pressure in cosmetic services.
• Identify shifts in patient demand toward alternative care settings.
