The Importance of Ancillary Revenue
For private practices, generating additional streams of income is crucial for financial sustainability. Ancillary revenue, often referred to as “mailbox money,” is income that comes in regularly without requiring active work. This can significantly improve a practice’s financial health while enhancing the services offered to patients.
Start by Dreaming Big
The first step to creating ancillary revenue is to dream. Think about what is missing in your field or what products could improve your practice. For instance, creating your own product line, such as foot care products or therapeutic devices, can set you apart in the market. Begin by researching what’s already available, then develop something unique that aligns with your practice’s brand and patient needs.
Brainstorm product ideas
Organize and track progress using tools like Trello
Focus on unique offerings that stand out in the market
Set Up Before You Launch
Preparation is key when launching a new revenue stream. Have everything ready—marketing materials, product information, and a clear story behind your new offering. This ensures a smooth roll-out without confusion among patients and staff.
Consider Consulting or Subscription Services
If you’re skilled in areas such as web design, coding, or offering niche advice, creating a subscription-based service can generate consistent income. For instance, offering consulting services or specialized memberships provides ongoing revenue with minimal effort once set up.
Invest in Low-Overhead Services
Incorporating low-cost services, like mobile foot care for nursing homes, can create another income stream. Hiring professionals, such as nurse practitioners, to handle these services offers a “hands-off” way to generate additional revenue.
Laser Therapy and Membership Programs
Incorporating services like laser therapy into your practice can attract patients while boosting your income. Implementing membership programs, such as discounted or priority services, can create recurring revenue and increase patient retention.
Diversify and Network
Never rely on just one revenue stream. Build multiple income avenues, such as writing articles, partnering with vendors, or starting an online presence. Networking and creativity are essential for long-term success.
Watch the video linked below to hear Dr. Freels go into detail on each of these opportunities for “mailbox money.”
Dr. Nicole Freels FACPM, Certified Pedorthist
Voted “Top Women in Business” + “Top 50 under 50, Lexington”, “Top Podiatrist in Lexington”, “Best Podiatrist”, “Podiatry Innovator of the Year”, “Best Medical Facility”, “Podiatry Legends”, “Best Podiatry Practice”
She is the founder and CEO of Lexington Podiatry and Modern Podiatrist. Over the past 16 years she has created a world-renowned multispecialty podiatry practice that focuses on conservatively treating all conditions of the foot and ankle.