The focus of a health care practice is, and always should be, the health its patients. But, all too often these days the health care practice itself is not healthy. And, lack of financial health hurts all of the caregivers in the health care practice and their patients as well. The specific issue that we want to address is the cost of running the healthcare practice and how that cost can be reduced. Your time is consumed by taking care of your patients, practicing the science and art of your craft. So, how can you reduce your health care practice overhead to make the business side of things financially healthy? You can address this issue in three basic steps.
You are busy taking care of your patients. But, going from patient exam to patient exam or surgery to surgery, your focus is on doing the things that make or keep people healthier. You would like to be making more money but have always assumed that you just need to take care of more patients, make yourself work longer hours, and accept more insurance plans (all of which expect a discount) into your practice. You are, indeed, in danger of working yourself to death. You really need to recognize that things can be different.
The part of your life where this should become apparent is with your bookkeeping or accounting reports. They should be easy read and they should provide you with insights into the business side of your practice. If you are not getting such reports you need to outsource your bookkeeping to someone like Exigo Business Systems in the Kansas City area. You may need to upgrade your bookkeeping software to the best solution for a small business, QuickBooks, so that you can routinely get QuickBooks Custom Reports.
With a clear set of reports at least every month you will begin to see how expenses are eating up your income and leaving your healthcare practice with less and less profit.
When you are getting clear reports you will see the big picture of your finances and you will see the important details. And, working with folks like Exigo Business Solutions who in turn work with health care practices on the same issues, you will gain insights you would not otherwise have access to.
If you are just recently out of your professional training, your practice of your profession is probably state of the art. But, they did not cover bookkeeping 101 in your professional training. And, you do not really know how much many things should cost. So, you may be paying too much for everything from gauze dressings to suture sets. With the help of folks like Exigo you will get an idea what things should cost and how your costs compare. This applies to supplies you buy and the staff that you employ.
More and more in the business world smart software is used for so-called business intelligence solutions to business problems. How many employees are needed for a given task? Can multiple tasks by done by two employees instead of three? Do you need the most highly trained person when you are not using most of their skillset in your office? Should you be routinely sending urgent issues to the local emergency room when you could be gaining new patients by finding room for them in your busy schedule? Exigo has experience helping doctors run a successful health care practice and can help you set up your reporting and tracking to make these issues clear.
Cost overruns are not unique to health care practices. At Exigo Business Solutions we work to maximize profits across many types of businesses. And we have extensive experience with health care practices. An approach that we use with success in many businesses is the Profit First method of bookkeeping, budgeting, and cash flow management. In this system a business allocates money for profit twice a month. And that business upgrades its bookkeeping systems, with our help, to spot and deal with cost inefficiencies.
You can learn more about Profit First at this link. However, in a nutshell, Profit First helps you set aside profit and deal with issues of human nature that in turn cause the costs of your business to run too high. That human nature issue is called Parkinson’s Law and it must be confronted in order to contain many aspects of excessive overhead. With the right bookkeeping tools in hand and advice from Exigo Business Solutions you will be able to set deadlines, manage staff and budgeting, and contain the excessive overhead costs that have been strangling your profits. For more insights into how to reduce your healthcare practice overhead contact us today.
The good old days of your health care practice are gone. You need to take a long and hard look at the financial aspects of your business and negotiate better agreements with health insurance companies.
If your healthcare practice is drowning in paperwork and not making money, there is a better way!