Week 13- extra credit assignment due October 3, 2012
This assignment is worth 1 point and is extra credit. It is due on October 3, 2012.
Answer these questions as a group and comment on them:
Can a DC give out gift cards to patients for referring new patients to his/her clinic? Why or why not?
The answer is YES! However, there is some things that I learned from an Attorney and Certified Public Accountant, that I would take into consideration before purchasing gift cards. A gift to an individual (by the way a husband and wife = 1 person) is 100% deductible up to $25.00 per person per year. However, there is NOT a limit on Entertainment. For example, if you were to buy your patients a ticket to a Packer game, the ticket can be deducted 50% of the face value. There is No limit to the amount of tickets you can buy for an individual. In addition, if you were to send an organization a gift it is 100% deductible IF a persons name was never mentioned. For example, the local chamber of commerce sends you a lot of referrals. You buy a $400.00 flower or fruit or candy arrangement and send it to "local chamber of commerce" that entire arrangement is now 100% deductible. If you send it to "Joe smith" only $25.00 is deductible. There is NO limit on how many gifts you can send to an organization. I am not a CPA, I am just sharing information with you that I received. It is not about how much you make in income per year it is about how much you RETAIN!
After discussing this as a group, we are not totally against giving out gift cards. With that said, we also believe it could appear to some that we would essentially be paying people to send us referrals. This may seem like a marketing tactic to some, but not a way that we would want to run our businesses. Overall, we believe that there are other ways to market the company and promote referrals within the practice. A personal, handwritten thank you card from the doctor is so much more valuable and still tells the customer that they are greatly appreciated.
While a DC can give out gift cards for referrals, we are not sure it should be done. If a chiropractor is friendly and good at what they do, we believe referrals will be made whether or not there is any incentive for the patient. Also, there are other ways to thank patients that would ultimately end up costing less for the doctor. As previously mentioned, thank you notes would be a good idea, or a bulletin board in the office with names of people who gave out referrals, thanking them for their help.
Group 17 As we all know, referrals are an important aspect of growing our patient base as well as the business. However, giving gift cards out can turn into a very tricky situation. It can be viewed as a kick back. I agree with previous group's views that sending out thank you cards or choosing other ways to thank patients for their referral would be a better choice/route.
Group 19 Referrals are an important aspect of building a practice. Patients who are estatic about their care and got results will want to tell others who to see. Doctors should make it a point to let satisfied patients know that referrals are an important part to a growing practice. Giving a gift card for a referral can be done. However, it is important to remember what you as the doctor want the patient to take away from their appointment. The patient needs to know that the service you gave them is different from other doctors. If giving a gift card for that service means loosing value on the adjustment, then the doctor just lost some satisfaction to that patient. We think sending a personalized written card to the referring patient is a better way to say thank you. Also letting the referred know that he values the other patient for sending another person to get chiropractic care.
Group 7 Acknowledging patients that bring in other patients to the office is an important part of running a business that relies on referrals. You must be careful when you reward patients and make sure that you are operating within legal limits. Giving a gift card to someone can be an effective way to say thank you. Even something as small as a 5 dollar gift card to a nearby coffee shop can make a patient feel appreciated. We believe that giving a patient a small gift card is acceptable as long as the amount is small and you treat all patients the same. If you give one person a gift card for a referral, you should be giving any patient a gift card for a referral. Even if you decide not to give a gift card, you should have some system that shows patients you appreciate their endorsement.
A DC can give gift cards to patients for making referrals. The problem with giving gift cards for referrals is that once you start providing gift cards to patients for making referrals, you will have to continue doing it for every patient that brings people into your office. This can quickly become a very slippery slope and there are many things to consider before it does. How much d you want to spend on the gift card? Will all of your patients enjoy the gift card that you give out? How many referrals warrant a gift card (ie. do you give a gift card for every single referral, or after every couple)? What happens if the business the gift cards are for closes down? These are all things that could end up causing headaches for the doctor. Our group believes that there are other ways to show appreciation for referrals than buying a gift card. A really good doctor that provides outstanding care for their patients should be able to get referrals based on their service alone. It is very important to let the patient know that you are thankful for their help in growing your business, and perhaps patient appreciation days or handwritten thank you cards would be a more personal way to let patients know that you are truly thankful for their recommendation of your services.
The issue of providing patients with gift cards for referrals boils down to a few different issues. Two of these are the monetary value as well as the equality in the system. For your financial stake, as well as for coming off as thankful and not as some other unwanted gesture, it is best to keep the value low while still being worthwhile. Second is the equality. All patients who make the referral need to be provided with the gift card. Further, the gift card should not be the reason for making a referral. That is why another gift for the referral may be better. One example that may be better would be a clinic t-shirt. This would go a long way of demonstrating your gratitude as well providing some easy marketing for the clinic. So in the end, yes gift cards are acceptable, but in the long run other options could prove to be better suited.
As future chiropractors we all worry about getting referrals, however, giving gift cards for referrals is a bit of a double edged sword. Can you give gift cards for referrals? yes. Should you give gift cards for referrals? That depends on your point of view. First, you have to make sure that you can afford to give patients gift cards for every patient they refer to your office. As a new practice those seemingly insignificant gift cards can add up fast and put an extra financial strain on the office. Second, I interviewed a couple of people out in the public what they thought of the practice. The responses were overwhelmingly positive in the aspect that everyone would like to get something for free. On the other hand, however, there were quite a few negative remarks that the chiropractor must be desperate to resort to "bribing" patients with gift cards. In my opinion it belittles the profession to resort to spending money for referrals. I much prefer other options that have been previously presented by other bloggers for advertising a clinic and bringing in new patients. In the end it comes down to the individual chiropractor and how they want to be perceived by the public.
The answer is YES! However, there is some things that I learned from an Attorney and Certified Public Accountant, that I would take into consideration before purchasing gift cards. A gift to an individual (by the way a husband and wife = 1 person) is 100% deductible up to $25.00 per person per year. However, there is NOT a limit on Entertainment. For example, if you were to buy your patients a ticket to a Packer game, the ticket can be deducted 50% of the face value. There is No limit to the amount of tickets you can buy for an individual. In addition, if you were to send an organization a gift it is 100% deductible IF a persons name was never mentioned. For example, the local chamber of commerce sends you a lot of referrals. You buy a $400.00 flower or fruit or candy arrangement and send it to "local chamber of commerce" that entire arrangement is now 100% deductible. If you send it to "Joe smith" only $25.00 is deductible. There is NO limit on how many gifts you can send to an organization. I am not a CPA, I am just sharing information with you that I received. It is not about how much you make in income per year it is about how much you RETAIN!
ReplyDeleteNice comment, Group 5. You have consistently had the best comments of any group in any class in the history of groups and classes.
DeleteAfter discussing this as a group, we are not totally against giving out gift cards. With that said, we also believe it could appear to some that we would essentially be paying people to send us referrals. This may seem like a marketing tactic to some, but not a way that we would want to run our businesses. Overall, we believe that there are other ways to market the company and promote referrals within the practice. A personal, handwritten thank you card from the doctor is so much more valuable and still tells the customer that they are greatly appreciated.
ReplyDelete*group 20*
DeleteGroup 14
ReplyDeleteWhile a DC can give out gift cards for referrals, we are not sure it should be done. If a chiropractor is friendly and good at what they do, we believe referrals will be made whether or not there is any incentive for the patient. Also, there are other ways to thank patients that would ultimately end up costing less for the doctor. As previously mentioned, thank you notes would be a good idea, or a bulletin board in the office with names of people who gave out referrals, thanking them for their help.
Group 17
ReplyDeleteAs we all know, referrals are an important aspect of growing our patient base as well as the business. However, giving gift cards out can turn into a very tricky situation. It can be viewed as a kick back. I agree with previous group's views that sending out thank you cards or choosing other ways to thank patients for their referral would be a better choice/route.
Group 19
ReplyDeleteReferrals are an important aspect of building a practice. Patients who are estatic about their care and got results will want to tell others who to see. Doctors should make it a point to let satisfied patients know that referrals are an important part to a growing practice. Giving a gift card for a referral can be done. However, it is important to remember what you as the doctor want the patient to take away from their appointment. The patient needs to know that the service you gave them is different from other doctors. If giving a gift card for that service means loosing value on the adjustment, then the doctor just lost some satisfaction to that patient. We think sending a personalized written card to the referring patient is a better way to say thank you. Also letting the referred know that he values the other patient for sending another person to get chiropractic care.
Group 7
ReplyDeleteAcknowledging patients that bring in other patients to the office is an important part of running a business that relies on referrals. You must be careful when you reward patients and make sure that you are operating within legal limits. Giving a gift card to someone can be an effective way to say thank you. Even something as small as a 5 dollar gift card to a nearby coffee shop can make a patient feel appreciated. We believe that giving a patient a small gift card is acceptable as long as the amount is small and you treat all patients the same. If you give one person a gift card for a referral, you should be giving any patient a gift card for a referral. Even if you decide not to give a gift card, you should have some system that shows patients you appreciate their endorsement.
A DC can give gift cards to patients for making referrals. The problem with giving gift cards for referrals is that once you start providing gift cards to patients for making referrals, you will have to continue doing it for every patient that brings people into your office. This can quickly become a very slippery slope and there are many things to consider before it does. How much d you want to spend on the gift card? Will all of your patients enjoy the gift card that you give out? How many referrals warrant a gift card (ie. do you give a gift card for every single referral, or after every couple)? What happens if the business the gift cards are for closes down? These are all things that could end up causing headaches for the doctor. Our group believes that there are other ways to show appreciation for referrals than buying a gift card. A really good doctor that provides outstanding care for their patients should be able to get referrals based on their service alone. It is very important to let the patient know that you are thankful for their help in growing your business, and perhaps patient appreciation days or handwritten thank you cards would be a more personal way to let patients know that you are truly thankful for their recommendation of your services.
ReplyDeleteThe issue of providing patients with gift cards for referrals boils down to a few different issues. Two of these are the monetary value as well as the equality in the system. For your financial stake, as well as for coming off as thankful and not as some other unwanted gesture, it is best to keep the value low while still being worthwhile. Second is the equality. All patients who make the referral need to be provided with the gift card. Further, the gift card should not be the reason for making a referral. That is why another gift for the referral may be better. One example that may be better would be a clinic t-shirt. This would go a long way of demonstrating your gratitude as well providing some easy marketing for the clinic. So in the end, yes gift cards are acceptable, but in the long run other options could prove to be better suited.
ReplyDeleteGroup 16
DeleteAs future chiropractors we all worry about getting referrals, however, giving gift cards for referrals is a bit of a double edged sword. Can you give gift cards for referrals? yes. Should you give gift cards for referrals? That depends on your point of view. First, you have to make sure that you can afford to give patients gift cards for every patient they refer to your office. As a new practice those seemingly insignificant gift cards can add up fast and put an extra financial strain on the office. Second, I interviewed a couple of people out in the public what they thought of the practice. The responses were overwhelmingly positive in the aspect that everyone would like to get something for free. On the other hand, however, there were quite a few negative remarks that the chiropractor must be desperate to resort to "bribing" patients with gift cards. In my opinion it belittles the profession to resort to spending money for referrals. I much prefer other options that have been previously presented by other bloggers for advertising a clinic and bringing in new patients. In the end it comes down to the individual chiropractor and how they want to be perceived by the public.
ReplyDeleteGroup 13
Delete