Chiropractic Philosophy and Principles

Profession: A social group that has exclusive access to knowledge and skills, is autonomous, is self-regulating, has authority, controls entry, is regulated by the state, and has exclusive powers and/or rights.

Professionalism: Professionalism is fundamental to the social contract: society uses the concept of the profession as a means of organizing the delivery of complex services it requires. Professionalism is the basis of the contract and of the expectations of the profession of medicine.

Ethics: Codified principles that guide a professional’s behavior and interactions with customers, colleagues, and society at large.

Morals: Morals are reflected in virtuous decisions and behaviors.

Values: Important and lasting beliefs or ideals shared by the members of a culture about what is good or bad and desirable or undesirable. Values have major influence on a person's behavior and attitude and serve as broad guidelines in all situations.

Relativism: A tendency to make ethical choices only on the basis of what looks right or reasonable according to one's own belief or value systems. Conscience: an inner feeling or voice viewed as acting as a guide to the rightness or wrongness of one's behavior.

Power: The ability to do something or act in a particular way, especially as a faculty or quality.

Trust: Firm belief in the reliability, truth, ability, or strength of someone or something.

Autonomy: Recognizes the right of patients to independent judgments about what happens to them, and to have these choices recognized by the doctor (if not always supported by the doctor, however).

Beneficence: Requires that the provider do good.

Non-malfeasance: Recognizes that at the very least the therapy should not cause harm.

Justice: Delineates that patients have the right to be treated fairly and equitably. It involves giving patients the care they need, the care they deserve, and the care to which they are entitled.

Veracity: Means telling the truth and implies respect for patients, for their autonomy, and for their right to make independent decisions.

Confidentiality: A casual comment from an office staff person may be overheard by another patient. Even patient charts left within view may be a source of a confidentiality breech. Strict protocols and training on confidentiality should be standard in health care practices. New US federal mandates are being implemented, increasing the security in all matters that may impact privacy and confidentiality protections.

Fiduciary: Involving trust, especially with regard to the relationship between a trustee and a beneficiary.

Paternalism: Obligates the doctor to mimic decision making of a parent or guardian when the patient does not possess the capacity to do so.

Accountability: The fact or condition of being accountable; responsibility.

Compassion: Sympathetic pity and concern for the sufferings or misfortunes of others.

Excellence: The quality of being outstanding or extremely good.

Integrity: The quality of being honest and having strong moral principles; moral uprightness. It is generally a personal choice to uphold oneself to consistent moral and ethical standards. In ethics, integrity is regarded by many people as the honesty and truthfulness or accuracy of one's actions.

Boundary: For physicians are the expected physical, psychological, and social distances between patients and doctors.

Transference: The phenomenon whereby we unconsciously transfer feelings and attitudes from a person or situation in the past on to a person or situation in the present.

Conflict of interest: A situation in which the concerns or aims of two different parties are incompatible.

Conflict: Serious disagreement or argument, typically a protracted one.

Social obligations: To act for the benefit of society at large.

Accounting: It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity.

Balance Sheet: A condensed statement that shows the financial position of an entity on a specified date.

Budget: An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.

Cash Equity Contribution: Money invested in your practice that represents an ownership interest.

Cash receipts: Cash you receive from patients after you’ve provided a treatment or sold a product.

Collateral or security: Assets pledged to support a loan (i.e. money, house, equipment).

Cost of goods/services sold: Direct costs incurred in delivering your product or service (i.e. pillows, supplements, orthotic supplies etc.) 

Current assets: Cash, accounts receivable, inventory and other assets that are due within one year.

Current liabilities: Payables, bank loans and other debts payable within one year.

Depreciation: The amount by which the cost of an asset is written off, over its estimated useful life.

Disbursements: Money paid out to run your practice – the opposite of revenue.

Entrepreneurship: The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.

Financing: The act of providing money for a project.

General and administrative expenses: The common expenses of doing business (i.e. chiropractic supplies, paper, marketing, rent, insurance etc.) 

Goodwill: An intangible asset reflecting the excess paid for your practice over its net asset value (i.e. the value of your patient files, location etc.)

Gross profit margin: The difference between revenue and the cost of goods or services sold.

Human resources: The division of a company that is focused on activities relating to employees. These activities normally include recruiting and hiring of new employees, orientation and training of current employees, employee benefits, and retention.

Income Statement: A summary of a management's performance as reflected in the profitability (or lack of it) of an organization over a certain period. It itemizes the revenues and expenses of past that led to the current profit or loss, and indicates what may be done to improve the results.

Interest expense: The cost of servicing your debt with lenders such as leasing companies, and banks.

Marketing: The management process through which goods and services move from concept to the customer.

Operating loan: A type of bank loan that should be used for day-to-day operating expenses.  (This is also known as a line of credit.) 

Operating profit: Profit before your draw, dividends and income tax.

Operations management: The design, execution, and control of operations that convert resources into desired goods and services, and implement a company's business strategy.

Payables: Also known as accounts payable – money owed by the practice to suppliers.

Receivables: Also known as accounts receivables – money owed to the practice by patients and third-party payers.

Retained earnings: Accumulated profits retained in your practice and not paid out as dividends.  This is more applicable to practices that are incorporated.

Shareholder’s equity: The net assets belonging to the owner of the practice.  It is the difference between the practice’s total assets and total liabilities. 

Strategic management: The systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices.

Systems management: Documented and tested step-by-step method aimed at smooth functioning through standard practices.

Term loan – a type of bank loan that is for a specified amount and period of time, often used to finance the purchase of practice, equipment and leasehold improvements (2)