The Value of the New Patient Exam

By Marc E. Swerdlick, D.C.

 

            One of the most frequent challenges raised by attendees at my Power Marketing Seminar is the doctor’s ability to charge a fee worthy of his or her care. Many of these doctors are affiliated with large practice management organizations that frequently recommend the sale of year-long care plans. While I’m not here to discuss the advantages or disadvantages of these plans; we’ll just say that their average visit fee has undergone some drastic price cutting. Many of these doctors are convinced that it would be practice suicide to increase their fees, which in turn, propels many into a financial frenzy that has resulted in an often undesired situation that necessitates a high volume/low fee practice and an unending urgency for new patients.

            So to increase revenue while also increasing value, you may want to take a close look at your new patient examination. While the value and importance of the new patient examination is especially pertinent for the corrective care practitioner (most notably due to the specific nature of the radiographic analysis), it has even greater value from the point of view of a marketing specialist. First, let’s take a look at where we currently stand in reference to exams.

            Today, the chiropractic examination is commonly given away free of charge or used as a foot in the door advertising gimmick at an embarrassingly low fee. Those in favor of the free or drastically discounted exam argue that it lures in patients that wouldn’t have otherwise initiated chiropractic care, by making the first step a risk-free proposition. From a financial and perception viewpoint, notable marketing experts in the business world would quickly point out that this technique can have very serious drawbacks, especially in the long term.

            Chiropractors will be quick to tell you how many new patients they generate per month by giving away an exam: “I got 40 new patients this month (with a free exam)!” Wow, how wonderful. What they can’t tell you about is the number of potential patients they have repelled with this practice. In other words, what was the reaction of those that saw an offer for a free exam, but had a negative reaction? It is the job of market research firms to conduct focus groups to analyze the effects of such practices. These studies analyze the effect of any marketing or advertising activity by soliciting the opinions of groups of individuals. These groups include women and men of different age groups, regardless of race, religion or ethnic background.

            In two separate focus groups conducted in 2001 and early 2003, the response to chiropractic advertisements that included free or drastically reduced examination fees clearly indicated a negative perception of the doctor and/or practice. Only 13 percent of the 270 individuals surveyed stated that they might act on the offer. Remember, this was not an assessment of how many people responded to the coupon, only the perception (what people thought) of the doctor and/or the practice.     

            Consider this: You spent many years in chiropractic college learning to diagnose. If you’re a doctor who focuses on the structural correction of the spine, it’s likely that you’ve spent many a weekend learning to evaluate radiographs and assess posture. What is the value of this education? If you’re CBP® Certified, what is the value of your certification? More importantly, as you evaluate your patients to determine a recommendation of care, what is the value of your new patient examination?

            The principles of marketing encourage you to initiate a relationship with your patients (especially those that are truly committed to their health) by establishing the value of your care. This is not to suggest that you charge an unreasonable fee for your examination. For example; someone who has just spent $200.00 (just a random number) for an examination, is likely to assign greater value to that experience than someone who has received that same examination for free. It’s simply human nature and a part of our culture to appreciate those things that have demanded more of our money. The net result is that the content of your report of findings and your subsequent recommendation for care are also likely to carry greater value. Telling someone that you are giving them “a $300.00 examination for only $47.00” just doesn’t carry the same message.

            Charging a respectful fee for your examination is a smart move. As professionals in the fields of marketing and consumer psychology will tell you, value and price are often measured as one. Pricing is therefore a powerful tool in establishing credibility. The price that you set for your new patient examination says a lot about how you, the doctor, view the value of your services. How much are you and your examination worth? How many people are not coming to your office because they perceive you to be the low-end discount chiropractor? Sure, your intent may be to introduce the world to chiropractic care and save as many lives as possible, but your examination fee or lack thereof may be saying something else.

            If you don’t agree with the last paragraph, just take a look around. Would you trust and value a hairstylist that charged $10.00 for her services? Would you value, and therefore, take better care of a watch that cost you $50.00 or $2,500.00? What about an automobile that cost $18,000 versus an automobile that cost $55,000?

            Pricing is a powerful marketing method that contributes to the phenomenon of PERCEIVED VALUE, a term that is commonly defined as the subjective value assigned to a product or service by an individual. People assign greater value to those purchases that come with a realistic (although sometimes excessive) price tag, regardless of whether it’s a product or service. Think about people’s regular activities that include a daily visit to pick up a cup of gourmet coffee, a weekly visit to a beauty salon and frequent visits to moderate/fine dining establishments. All of these businesses are well aware that quality and service must often accompany a respectable price to convey value. And while it is true that chiropractic is a very special profession, it is still a business; even if many of our colleagues seem to believe that the principles of marketing do not apply.

            Think about what you spend on a daily, weekly or monthly basis on products and services that can’t compare to the value of a chiropractic adjustment. What have you spent on a meal for two at a decent restaurant? Do you own a nice watch? Do you drive an automobile beyond that which most would consider to be basic transportation? Do you go to a hairstylist and how much does it cost you each week or month? Whether they like it or not, those who answered honestly realize that, in many cases, many of things that they enjoy in life also have price tags that give more value to the product or service.

            Charging a respectable fee for a chiropractic examination cannot make up for lack-luster chiropractic care. And I am not suggesting that a doctor who offers a free or severely discounted examination is giving anything less than an excellent examination. What we’re talking about is perception; the perception from the point of view of your prospective patients. If the value of your care were established upfront by means of your new patient examination, and was also accompanied by a respectable fee, what do you think this would do for your patient retention and referrals? Looking at things from the other side of the table, please think about the following: Isn’t it interesting that free or drastically discounted examinations are the norm, yet at the same time, so many chiropractors will spend thousands, if not tens of thousands of dollars, on getting new patients?