There's a term Fighter Pilots use called the OODA loop. It stands for
I was reminded of the OODA loop recently while talking to an attorney named Rob.
Rob handles BIG bankruptcies. Like $100 Million and up. And right now, Rob said that all his business is in the healthcare market.
Every WEEK, his firm is getting calls from large hospitals and health systems who are trying to figure out if they should merge or close their doors.
In my first convo with Rob, I realized a few things:
- ALL of healthcare is getting shitty repayments… Chiros, MDs, Hospitals, Surgery Centers
- Hospitals are just now feeling the “pinch” that Chiros felt with the reductions in payment that occurred around the introduction of “Obamacare”.
- Chiros have a distinct advantage that they can pivot quickly
In the example of the OODA Loop, single-doctor Chiro offices are typically the fastest to make necessary change. They can “close” the OODA Loop very quickly.
One change in large hospitals, as Rob told me, can take YEARS to implement.
As an example, he told me of 1 hospital that engaged in a 24-month roll-out of their “new” EMR.
2 frickin' years to get the notes system implemented! And before they finished, the EMR had performed multiple updates, further confusing things.
Yet I have a friend that got her office up and running with a new EMR system in a WEEKEND!
So don't underestimate the SPEED of which you can get things done. That speed is crucial, since it helps to also reduce operating debt.
The cost of continued operation, even in the presence of a changing repayment landscape, is why these well-funded hospitals are declaring bankruptcy.
Before they can adjust their price or service, they are 6 months into paying payroll and debt… all the while, the expected amount collected is down 50%. That wave quickly becomes overwhelming.
So where is the advantage for you?
To reduce costs, most hospitals are becoming “decentralized.” Instead of 1 HUGE hospital, there will be more and more smaller “community clinics.” They are cheaper and easier to open.
Because of this change, there will be an increased need for multiple “primary” providers.
And hospitals are quickly realizing that the best “primary musculoskeletal provider” is a well-trained Chiropractor.
(Step back and observe how many Chiropractors are working in hospitals… it's up 870% in the last decade…)
But we know the hospitals operate in the past off old information.
So what is the future?
Well… Equinox Fitness and Lifetime Athletic are both moving from “Spa” treatments to “Performance Centers” based on customer feedback.
Clients want the “one-stop-shop” for their active healthcare… You know, treatment, training, education… all in one place.
And if you see this as the future, then use the speed you have as an independent provider. Pivot quickly before the bigger groups do. Steal that early market advantage.