Selecting and hiring a practice administrator - Practice Management

Physician Executive, Sept-Oct, 2002

While physician leadership is key to a practice's success, selecting a top-quality non-doctor manager or administrator is vitally important, as well.

This is the person charged with setting up and maintaining office systems ranging from scheduling patients, to billing and collecting fees, to managing front- and back-office staff.

We consider managers as the lead non-physician overseers in a small practice of two to four physicians. They may simply be the most responsible staffers promoted from line positions or moderately qualified medical workers with previous management experience. Their authority is typically limited to managing the lay employees and overseeing the business systems.

Administrators, on the other hand, are typically considered mid- to high-level business professionals, often armed with an MBA or equivalent degree. They may be responsible for leading a larger practice (though "larger" may mean groups of anywhere from a few to hundreds of physicians) in all but the purely clinical aspects of its activities. Regardless of capabilities, though, even the finest administrator typically reports to the physician-owners or their physician-level governing body.

Difficult search

Doctors looking for qualified administrators these days report that it's harder than ever to find just the right person for their practice.

There may be many qualified applicants, but the proper choice depends partly on intangibles that make the selection difficult. That's one reason why practice administrators perceive that competition for these jobs is more intense than ever.

True, well-placed classified ads will amass a sizable stack of resumes, but medical management consultants note that most of them simply don't fill the bill. Given the job market, they see an overabundance of mediocre managers with little experience and many former hospital administrators trying to shift to practice management.

Finding a capable administrator with a credible group-practice track record usually requires screening out dozens of unqualified applicants.

Recruiting methods haven't changed much in recent years. Classified advertising still heads the list. Advertising nationally in professional societies like Medical Group Management Association or your own specialty's academy will gather a broader pool of applicants than just running an ad in local papers. Some state organizations post job opportunities, too.

The Internet also offers new openings for advertising. MGMA, for example, posts classifieds on its Web page (www.mgma.com) on a fee-paying basis. But don't bother with general employment Web sites, like www.monster.com. They rarely attract good candidates for specialized positions like practice administrator.

Also, consider hiring a professional recruiter to help find the right person for your practice. If you go that route, stick with those with experience in practice management recruiting. They understand the most about what it takes to run a medical practice today.

Whatever practical approach you take, increase your chances of hiring the right man or woman for the job by following five key principles. Three apply to the practice and the other two pertain to the candidates you consider.

Mind your P's ...

(1) Preparation

Don't underestimate the amount of work necessary to prepare your practice for a new administrator, especially when hiring your first professional manager. Carefully define the job before you launch your search. As you build a job description for an administrator, keep in mind what it really takes to run a practice in the 21st century.

Prepare yourself and your partners for working with a professional administrator, too. Carefully assess your need and your readiness to accept executive leadership. Too often, a medical group hires a "pro" then fails to grant the necessary authority to take advantage of his or her experience and training.

(2) Pay

Recruiting a top-flight manager is no exception to the trite saying: "You get what you pay for." Salary and benefits for skilled executives keep rising.

Surveys like those published by MGMA and The Health Care Group report average annual salaries from $60,000 for smaller groups to $125,000 for those with more than 25 physicians. (salaries at the manager level are lower, often in the high $30s and low $40s).

Plan to pay generously in the search process, too. It's good. to cast a broad net to catch a good manager and a national search can cost plenty. Recruitment expenses like national advertising, candidates' airfare and travel, long-distance moving expenses and recruiter's fees can add up.

(3) Persistence and patience

Going through a stack of 50-75 lackluster resumes can discourage anyone seeking the right person to run a medical practice. But don't succumb to the temptation to compromise. Take your time and put forth the effort required to find someone who will perform up to your standards. Settling for a candidate you're unsure about will bring nothing but misery for everyone involved.

... and your Q's