6 Strategies for Keeping Your Medical Practice Costs Low
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Most doctors have attempted to trim expenses with the intention of improving their practice’s profitability. Try as they may, some will find that money still seems to get spent a lot faster than it is accumulated. While you may think that there is no way around the high costs of operating a medical practice—think again, as there are plenty of creative and out-of-the-box solutions that have been put to the test. Here are some considerations you might try:
1. Rent Out Office Space
If you have a large building then sharing the space is a great way to cut your costs. You want to find someone with compatible services so that you can potentially reach more patients. For instance, asking a psychologist or eye doctor to share space with you would work well. Once you’ve found the right tenant, not only are you able to charge them rent, but you can also ask that they pay a portion of your utility bills. Some medical facilities even share receptionists which help keep costs low.
2. Hire Temporary Support Staff
When working with an inconsistent budget determining how much you have for payroll can be a challenge. Rather than foot the bill for support staff such as nurse’s aids and medical transcriptionists, you can look to nursing employment agencies for assistance. You can hire staff on a temporary basis and not have to pay high out-of-pocket costs of in-house staff such as employer taxes, health benefits, and trainings.
3. Be Diligent in Collecting Copays and Deductibles
Billing your patients for medical services can be costly. From the amount of time it takes staff to generate invoices to the cost of sending out invoices and collecting on the account, there is a lot that goes into the billing process. You can save your practice time and money by collecting the copays and deductibles prior to seeing your patients. You can easily access insurance information online to determine how much a patient will have to pay for a particular service. You can request that this be provided upfront to cut your losses.
4. Go Paperless
Going paperless certainly does wonders for the environment, but it can also save your practice a lot of money. With interactive medical software being designed on the regular basis, you should be able to find a platform that allows you to easily schedule appointments, store patient medical information, write prescriptions, send out invoices and other correspondence, and follow up with your patients as needed.
5. Purchase Office Supplies in Bulk
In a medical practice, you’re going to be utilizing office supplies like pens, paper, copiers, fax machines, ink, folders and more on the regular basis. Instead of purchasing in small quantities, consider the possibility of buying your merchandise in bulk.
This way you have the supplies you need in stock, but they’re often provided to you at a discount for buying more than a traditional amount. Of course you’ll want to review your cash flow to determine if this is feasible for your practice.
6. Buy Used Furniture
From your waiting room to your office, the furniture you purchase for your medical practice does not have to be brand spanking new. In fact, you can find some really good quality used pieces that will save you a reasonable amount of money. Keep an eye out for liquidation sales, local yard sales, or companies who may be selling their furniture at a decent price.
The above six ideas are fairly easy to implement and are sure to save you a decent amount of cash over the next few months. Running a medical practice certainly has its challenges; however, you don’t have to let finances be one of them. By finding out-of-the-box creative ways to cut back on expenditures like staffing, office supplies, and furniture, you can free up some of your cash so that it can be used to make improvements within your practice.
Photo courtesy of: DarkoStojanovic
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