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Operating Leadership7 min read

What Would a Fractional COO Do in Your Practice?

You may know what needs to change and still have nobody with the time or authority to carry it through. Here is what outside operating leadership should take off your plate.

Illustration for Operating Leadership: What Would a Fractional COO Do in Your Practice?
Operating Leadership

The partners agree that collections need attention. The administrator has a list of claims to review. Someone has spoken to the billing company. A month later, the same issue is back on the agenda, with the same people asking what happened.

Before hiring a fractional COO, ask what kept the decision from becoming work. Was the problem poorly understood? Did nobody have time? Did the person responsible lack authority to change the process? Those questions lead to different kinds of help.

A fractional COO brings senior operating leadership for an agreed portion of the week or month. The useful part is having someone responsible for connecting the owners’ decisions, the administrator’s work and the practice’s performance. The title alone tells you very little about what that person will do.

Start with the work that keeps coming back

Write down three decisions that have stalled. For each, name the next action, the person responsible and the obstacle. If the same obstacle appears repeatedly, you have a better starting point than a broad request to improve operations.

For example, a denial problem may involve registration, authorization, coding and billing. Each team can complete its assigned task while the claim still fails between them. Someone needs to follow the handoffs, agree how exceptions are handled and check whether the change reaches the next claim.

That is a reasonable assignment for a fractional COO. A promise to increase revenue without first understanding those handoffs is much harder to evaluate.

What the role can own

The scope might include a weekly review of the operating priorities, follow-through with managers, vendor performance, staffing coverage and preparation for physician-owner decisions. It should also name the limits: who can approve spending, change staffing, commit the practice to a contract or resolve a disagreement between partners.

Clinical decisions stay with clinical leadership. An outside operator can help make the schedule workable, but cannot decide that a patient needs a shorter visit. Likewise, physician governance requires decisions from the owners. A COO can prepare the options and run the process; the partners still need to decide.

The practice administrator should understand how the relationship will work before the engagement begins. If that person is already carrying too much, adding another meeting and a second set of instructions will make things worse. Agree which responsibilities move, which stay and how staff receive direction.

What a useful week looks like

A weekly review can be brief if the preparation is sound. Review the agreed measures, the actions due and the decisions blocking progress. End with a named owner and a date for each next action. The meeting is useful when the following week brings evidence that something changed.

Suppose the priority is patient access. The operator might compare appointment demand with usable slots, trace cancellations and work with the scheduling lead on a limited waitlist test. The review should include completed visits, patient suitability and staff time. A filled slot is valuable only when the care can be delivered safely and the process is sustainable.

MGMA’s guidance on operating benchmarks supports defining the measures before comparing performance. Specialty, staffing model and reporting conventions matter. A benchmark can help locate a question; your own reports and workflows are needed to explain it.

How scope and fees should work

An ongoing engagement is usually quoted as a retainer for an agreed scope. Ask what access, working time, on-site presence and responsibilities the fee includes. A few scheduled meetings and hands-on management are different commitments, even when both proposals use the same title.

At Edison Breakwater, fees are private and agreed in writing. The first engagement is the four-week, fixed-fee Operating Baseline. It produces a findings memo, a KPI scorecard and a 90-day plan. That gives both sides a concrete basis for deciding whether ongoing operating leadership is needed.

If the work continues, the proposal should identify the result, its measure, the reporting source and the review date. It should also explain the practice’s responsibilities. Neither the operator nor the owners should have to guess what a successful month means.

When another kind of help fits better

A discrete coding question may need a coding specialist. A vacant administrator role may need recruitment and interim coverage. A cash concern may first need a careful reconciliation rather than an ongoing executive retainer.

If the issue is recurring work across departments, with decisions that nobody can carry through, fractional leadership may fit. If the cause is still unclear, establish it before buying a larger commitment.

For a closer look at the boundary between roles, see fractional COO versus practice administrator. You can also review an illustrative Baseline memo and scorecard before deciding whether the Operating Baseline is a sensible first step.

The question to settle is what work needs an accountable leader, and whether your practice can give that person the authority and cooperation to do it.

Unfamiliar with a measure in this article?

The plain-language glossary explains every operating measure we use, how it is calculated and why it matters. Current industry figures live on the State of Independent Practice page.

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Start with the Operating Baseline

Four weeks to understand what is getting in the practice’s way. A fixed fee, a written findings memo, a KPI scorecard and a 90-day plan your team can use.

We reply within two business days. You speak directly with the operator who will do the work. Scope and fee are agreed in writing before you commit.