Start With Your Staff
Perhaps the two largest expenses a family physician incurs are staffing costs and employee salaries. Almost 32% of costs within a family medicine practice come from supporting staff salaries and benefits. A good starting point to saving money is evaluating the efficiency of your staff and the work they are performing. Are there any unnecessary tasks that take too long to complete? Are there ways to combine tasks that save both time and money? Are you currently overstaffed? These are questions to consider when looking for ways to cut costs while remaining productive.
Supplies and Equipment
One of the easiest and most environmentally friendly ways to save money is by purchasing slightly used clinical equipment and office furniture. If you’re a physician in the market for some new office supplies, try companies and vendors that specialize in used medical equipment. If you need to stock up on office basics like pens, paper, printer ink, etc., buy in bulk. You’ll receive major discounts and will be able cut down on frequent trips to the office supply store.
A big financial issue that plagues medical practices is incorrect billing. According to Physician’s Practice, “A large amount of collection dollars are lost due to the fact that the billing receivables are not coded to the correct levels.” If your staff isn’t properly trained in the medical coding process, your hard-earned money could be flying out the window. Mistakes based on human error are common, but they are also avoidable. Outside of staff members, incorrect payments can come from computer errors as well. Medical claims that are processed electronically are susceptible to computer glitches. By being diligent and monitoring claim payments, you can find those errors and report them immediately. Also, archive old data in case you’ve acquired a new revenue management system. These could come in handy in case of an audit.
Making a few small financial adjustments within your practice can save you big in the long run. Taking simple steps like monitoring your operating expenses and hiring well-trained staff can streamline your medical billing process and lead to a profitable and productive practice.