6 Ways to Reduce Costs for Your Medical Practice
When you’re running a medical practice, you’re also running a business. If you want your business to grow, you’ll need to reduce your expenses. You might consider trimming your costs that are related to your overhead, personnel, technology, insurance, billing or bill processing.
However, there are areas within these categories that can generate more revenue for your business. For instance, investing in technology will lead to process improvements that may help manage medical appointments. Once this is implemented, this will help you as a physician find more time for revenue-generating activities. Before you consider applying for a medical business practice loan, take a look at the following 6 ways you can effectively cut costs in your medical practice.
Related: SBA Loan Application Requirements: The Complete List of Documents
1. Upgrade Your EMR Technology
Cutting costs can also mean making cost-saving investments. To illustrate this point, medical practitioners who are interested in reducing their operating costs should consider upgrading their existing technology. This counter-intuitive step could streamline the process of organizing and managing the health records of your patients.
Nowadays, small medical practices apply for medical practice loans so that they can upgrade their existing electronic medical records (EMR) systems. Those who made this investment can attest that systems improvement leads to improved patient outcomes and enhanced coordinated care. Modern EMR systems eliminate the need to hire full-time employees while maximizing your operation’s efficiency.
2. Maintain Your Capital Medical Equipment
Those who prioritize the safety of their staff and patients will agree that maintaining their capital medical equipment is necessary. As you make sure that your equipment is serviced regularly, you save money by prolonging its life.
You’ll know that you’re maintaining your capital medical equipment well when you always clean them after each patient. Scheduling regular preventive maintenance inspections for surgical tables, vital signs monitors, and anesthesia machines is also a must. Additionally, you’ll need to list the next recommended service date for each piece of equipment and make sure that it’s followed. Lastly, contacting your equipment service provider at the first sign of a problem will ensure that you’re properly maintaining your equipment.
Related: 4 Reasons Why Equipment Financing is the Best Loan Option for You
3. Invest in a Practice Management System to Reduce Incorrect Billing
Most medical practices suffer financially because of incorrect billing and coding at different stages of the medical billing process. The usual reasons behind incorrect billing and coding are the slow collection of patient receivables and coding at the wrong levels.
The best way to address this problem is to deploy a practice management system. These systems can correctly perform each of your billing procedures. Furthermore, they can provide you with automated medical billing and real-time verification of insurance coverage and eligibility. Practice management systems can also simplify your billing and claims process as well as integrate them with different EHR systems.
Billing errors can happen even if the job is being handled by the most competent staff member on your team. Thankfully, you can eliminate unnecessary medical practice expenses when you automate your billing process with a practice management solution.
4. Outsource Your Business’ Non-Core Responsibilities
Have you ever thought about outsourcing payroll, collections, and marketing? When tasks that are identified as non-core responsibilities are outsourced, practitioners and support staff can focus more on core responsibilities. As their productivity increases, think of how much improvement you’ll see in specific areas. These areas include new business development, patient care, continuing education, and disease prevention.
Since your medical practice only pays for services as they are provided, outsourcing can offer you significant cost savings. Outsourcing means you won’t have to hire full-time employees or pay for their training and office equipment.
5. Consider All Possible Vendor Alternatives
Most medical care providers remain loyal to their vendors because of the strong relationships they developed over the years. However, when you don’t consider other vendor alternatives, you could end up spending more money than you need to. To make sure that you’re making the best possible financial decision, try to re-evaluate your vendors before every contract renewal. To give you an example, you could save about 15% when you switch to a different medical waste disposal company. When choosing another vendor, consider the overall cost, quality of service, and the costs involved in the transition.
6. Be More Eco-Friendly
You’re probably aware that adopting eco-friendly practices is good for your business. Nowadays, businesses are responding to a global imperative and consumers demand to go green. The friendlier your business is to the planet; the more respect your business will get.
Deciding to go green by making simple changes to your medical practice can save you a lot of money. To be eco-friendlier, try to look at small changes that include selecting supplies that you can re-use or sterilize. You can also do things like switching the type of light bulbs you use in your office.
Do You Want to Apply for Medical Practice Loans?
In situations where you find yourself in need of extra cash to stabilize your cash flow, medical practice loans may be of big help. Although reducing costs can result in money savings, you can’t afford to do this forever. Eventually, you have to spend money to allow your business to grow and expand. With business loans, you can get additional cash to add to your working capital so you won’t have to think twice about taking on opportunities that can contribute to your business’ success.