While the financial experts and the politicians continue to debate whether we’ve officially entered a recession, three things are for sure. The economy has significantly cooled, inflation is at historic highs, and consumers and businesses are feeling the pinch!
So, what do these challenging economic conditions necessitate for your medical practice? In a nutshell, smart medical practice owners are looking to safeguard their operations by taking a hard look at expenses.
In today’s post, I’d like to share 3 ways you can reduce expenses without sacrificing patient care.
1. Take a Fresh Look at Your Practice’s Budget
To effectively reduce expenses, you will first need to have good handle on how your dollars are being spent (and we mean EVERY dollar). Too often, physician-owners are reactive to incoming bills rather than strategically approving expenses in advance and then allocating approved dollars as expenses occur.
Budgeting sessions are also the ideal time to cut costs that are just “nice-to-haves” or that are not required to maintain and grow your operations. If you take a hard look, we’ll guess there’s some waste that, once eliminated, flows right to profits.
As you begin to better define your monthly and annual expenses and pair those with expected revenue, your cash flow and profit picture begins to take shape.
2. Keep an Ongoing Pulse on Your Balance Sheet
View your balance sheet on a regular basis to monitor cash and debt levels. Keep track of solvency ratios to ensure your practice’s fiscal health. Are cash levels declining over time? If so, dig deep to understand why. Uncover whether it’s a result of general increases in cost of goods and services, or perhaps one or more “surprise” expenses that were not accounted for in your budget.
This comes back to the old saying “what gets measured, gets done!”. It’s the same with your finances. Paying attention to these numbers on a regular basis helps you track progress and make better financial decisions!
3. Look to Streamline Your Operations
If it’s been some time since you’ve evaluated your practice from top to bottom from an operational perspective, NOW is a great time. Technology and communication tools continue to evolve at a rapid pace, meaning there are most likely medical office-specific solutions available to help streamline your day-to-day operations. Once implemented, these tools not only make life easier for you and your office staff, but usually deliver considerable cost savings over the “old way” of doing things.
Whether it’s online patient scheduling, automated appointment reminders, online/tablet-based patient intake, or automated patient charts, get creative and look for ways to streamline and save your practice money.
Smart practice owners know that it pays to run a tight ship! That’s especially true in these uncertain economic times. Follow these 3 tips to ensure your medical practice remains healthy through all the ups and downs!
Until next time…
If you’re looking to increase both the revenues and profitability of your medical practice, don’t hesitate to reach out at 844-424-9637.
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7 Key Financial Practices That Separate Thriving, Growing Practices From The Rest.
There’s no denying it. Creating a thriving practice is about much more than practicing medicine!
Topping the list of “other” priorities is your practice’s financial management. In this short guide, the experts at STAC Bizness Solutions outline 7 financial best practices that differentiate struggling practices from those which are highly profitable and experiencing healthy levels of growth.