There is no doubt that the healthcare industry is going through some interesting times. Physicians with small to mid-sized medical practices are focused on providing the best care to their patients, but as the industry braces for change, the health of the business doesn’t always get the same treatment as the patients. In many cases, collection specialists can help keep cash flowing.
More and more patients are opting for cheaper insurance plans that lower their monthly premiums but raise their deductibles. One of the challenges with this is co-pays are much higher under these bargain insurance plans, which means your patients who are opting in to these new plans might experience some sticker shock when it comes to their bill from you.
If your practice is like most, you don’t have a dedicated professional to help you fix the financial problems you experience. The one thing in your favor is that most cash flow issues only have a handful of sources so getting to the bottom of the problem may not be too difficult. Let’s take a look at some of the most common areas where cash flow issues crop up.
Examine Your Overhead Costs
First, take a look at your overhead costs. Have you hired too many staffers or have you invested too much in equipment that doesn’t get enough use?
Another area where overhead becomes an issue is within your inventory. When the “pantry” is too full of medical supplies that have the risk of dying on the shelf, consider taking a closer look at how you’re ordering supplies and make the appropriate changes.
One of the most common issues you’ll see at practices is services offered at a loss. Take close inspection of every penny that goes into every service you offer and you’ll see where you’re spending too much time and money without the proper return.
Do You Have a Cash Reserve?
The second problem for low cash flow for many small- to medium-sized practices like yours is an insufficient cash reserve. This means that when cash flow issues do crop up, you don’t have enough in your reserve to make your monthly bills or your payroll. This is probably more common in newer practices than it is in established ones, but adding capital to the reserves is a smart decision for businesses old and new
Managing Billing is Crucial
Finally, if you haven’t directed your staff on the appropriate measures to take in getting your patients to pay on time, you’re doing the greatest disservice of all to your practice. Getting your front office trained on prompt billing and updating patient contact information is very important in keeping a positive cash flow position.
Unfortunately, as hard as you work to keep your patients informed on what is expected of them financially, there will be a percentage that pay slow or refuse to pay at all. In these cases it’s wise to choose collection specialists who know exactly how to get patients to pay, but with an ethical and professional approach. Omega-RMS, llc. uses an innovative approach to receivables management and will partner with you in several ways, all of which will keep your cash flowing and your business growing.