In this episode of the Wealth Planning for the Modern Physician Podcast, David Mandell welcomes back Jerry Kelsheimer, President of Medic Management Group. With decades of experience in healthcare business management, Jerry discusses how the healthcare landscape has changed dramatically over the past five years, affecting physicians’ financial performance and operational efficiency. He outlines the evolving challenges medical practices face—including reduced reimbursements, higher labor costs, and increasing patient demands—and stresses the importance of disciplined, intentional business management.
(Video Available November 26, 2025 at 6 AM Eastern)
Throughout the conversation, Jerry highlights common areas where practices can improve performance and financial outcomes. He identifies five operational areas ripe for improvement: front desk execution, administrative role clarity, revenue cycle management, compensation structures, and market development. By focusing on these, he explains, practices can identify hidden inefficiencies and regain profitability.
Finally, Jerry and David explore the emotional and leadership aspects of running a medical practice. Jerry shares his ‘Four Cs’ framework—conscience, competency, capacity, and courage—as a way for physicians to address burnout and lead meaningful change. He also predicts a future shift toward more collaborative hospital-physician models, with hospitals moving away from full employment toward partnership-based structures.
KEY TAKEAWAYS:
- The business of healthcare has evolved rapidly, requiring greater operational discipline from medical practices.
- Many physicians feel overworked with less financial return due to payer pressures, rising labor costs, and compliance demands.
- Five key areas—front desk execution, role definition, revenue cycle, compensation alignment, and market development—offer opportunities for performance improvement.
INSIGHTS:
- Healthcare organizations must operate with intentional management rather than by habit to maintain profitability.
- Declining reimbursements and rising costs have created an environment where efficiency and structure are vital.
- Front desk and scheduling efficiency can significantly affect revenue generation and patient satisfaction.
- Clearly defined administrative roles and accountability are critical to eliminating waste and overlap.
- Revenue cycle management often holds hidden opportunities for financial improvement.
- Aligning compensation models with practice goals encourages better performance and retention.
- Understanding market margins and patient demographics helps determine where to focus efforts for profitability.
- Physicians need to balance business management with personal well-being to avoid burnout.
- Jerry’s Four Cs—conscience, competency, capacity, and courage—serve as a framework for leadership and change.
- Future healthcare trends point toward more collaboration between hospitals and independent practices rather than direct employment.