the Grace Report Provides Important Private Intelligence, Gathered Exclusively
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Headlines- February 20, 2006
THE GRACE REPORT

Headlines- February 20, 2006

Commentary and Opinion by Robert L. Michel:
Lifestyle Issues Take Priority With Generation X Ob-Gyns

OB-GYN GROUPS ACROSS THE COUNTRY ARE FINDING that new physicians coming out of residency are more interested in having a balance between work and home life than was true of ob-gyns of the Baby Boomer Generation. This trend, and the demographics which reinforce it, portend tumultuous times for the ob-gyn profession.

After all, the demands of an obstetrics/gynecology practice directly
clash with any physician seeking an 8-to-5,Monday-through-Friday
working arrangement. That places the newly-minted, Generation X
physician seeking a regular office schedule and a minimum of on-call duty for nights and weekends in direct conflict with the needs of most small obgyn practices. Add to this the expectation that they should be paid “big money” (as one physician recruiter told us), and all the elements for a donnybrook between younger and older ob-gyns are in place.

How do I know this? I’ve spoken to the experts on this developing
trend: physician recruiters. For my money, physician recruiters are often
the best “canary in the coal mines” for identifying emerging trends. As you will read on pages 11-13, physician recruiters did confirm this trend.

The ob-gyn profession already is among the most difficult in terms of its
effect on the physician’s lifestyle. At least one survey shows new graduates would prefer the regular hours of such specialties as radiology to the irregular schedules inherent in obstetrics.Add to that the costs associated with rising liability insurance policies and the risk of a medical malpractice lawsuit. These are major deterrents for any new physician considering the ob-gyn profession.

Collectively, these factors will aggravate what is likely to become a big
issue confronting the ob-gyn profession. In contrast to Baby Boomer obgyns, who willingly worked long hours to support their financial goals,
Generation X ob-gyns bring different motives, career preferences, and
lifestyle goals to their practice of medicine.

My prediction is that we will see this generational divide create a clash
of major proportions within most private ob-gyn groups. It will be an
interesting battle to watch as determined Gen X ob-gyns assert their
preferences against Boomer ob-gyns, who are members of the “me first”
generation and accustomed to having their way on most issues.

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Houston OB-Gyn Supergroup Grows on Patient Satisfaction

Keeping patients happy underpins growth, supports ongoing service enhancements

CEO Summary: Obstetrical and Gynecological Associates, PA (OGA) of Houston, Texas used a unique business strategy to grow into one of the nation’s largest ob-gyn groups. Since its founding 44 years ago, its physicians have focused on serving patients by delivering excellent, compassionate, and convenient patient care. This strategy is supported by the group’s long-time conviction that patients are best-served by having a full range of ancillary services on site. Does this business formula work? One proof is the fact that its 36 physicians, once they join OGA, seldom leave except by retirement.

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How One Ob-Gyn Group Builds Ancillary Service $s

Ob-gyn group uses these services to enhance patient satisfaction and diversify revenues

CEO Summary: Ancillary services form an essential cornerstone in the
business strategy of Obstetrical and Gynecological Associates, PA (OGA), a 36-physician group in Houston, Texas. OGA now offers nine distinct ancillary services and each is growing, profitable, and meeting the group’s financial targets. Here are the five key lessons learned about ancillary services, explained by Bob Baker, Practice Administrator at OGA. Also included is a summary of the nine business lines operated by one of the largest ob-gyn group practices in the United States.

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Gen X Docs vs. Baby Boomers: Mismatched Expectations

Tension is growing in ob-gyn groups as Gen X physicians pursue different career goals

CEO Summary: Many established ob-gyn groups find it increasingly difficult to recruit younger doctors to work the long hours and take responsibility for the duties that are typical in ob-gyn practices. Younger ob-gyns want: 1) regular hours; 2) reduced night work; and, 3) fewer weekends on call. To provide insight on this growing generation gap, the GRACE REPORT surveyed experienced physician recruiters. Their experience, opinions, and predictions point to a widening chasm between the expectations of Generation X physicians and their older, Baby Boomer counterparts.

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Marketing the Ob-Gyn Group To Attract Quality Patients

Building a steady flow of profitable new patients takes only simple marketing strategies

CEO Summary: A regular flow of new patients is essential to the long-term financial health of every ob-gyn group practice. However, most ob-gyns and their practice administrators struggle to develop an effective marketing and advertising campaign. Here’s insight and practical suggestions from a veteran in marketing women’s health services. Marie Shaw’s advice is that every obgyn group should start by identifying the profile of its “perfect patient prospect.” That profile is used to shape the specific advertisements and marketing efforts used to attract new patients to the ob-gyn group.

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Point-of-Care Charge Capture Recommended by Society

Hand-held device allows ob-gyns to record charges and improve coding for procedures

CEO Summary: It’s not often that a medical society recommends commercial products. That is why the Society for Maternal-Fetal Medicine’s support for a point-of-care coding system is noteworthy. Ob-gyns can use the MD Coder system to gather billing data while delivering patient care. One ob-gyn who tested the device for the society estimates that it will easily pay for itself because of how it simplifies coding and captures all services provided.

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INTELLIGENCE: Late and Latent

WICHITA OB-GYNS DESIGN CLINICAL OFFICE LIKE A SPA

LONDON PHARMACIES OFFER FREE CHLAMYDIA TESTING PROGRAM

Look for the next briefing on Monday, March 13, 2006.

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