Revenue Mistakes Medical Practices Make

Revenue Mistakes Medical Practices Make

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Accountants don’t open private medical practices. Doctors do. Regardless, it’s important to keep a close eye on business matters. Doing so helps ensure your practice remains open and continues its mission of delivering wellness to patients.

Avoiding the following revenue mistakes medical practices make will help ensure your practice continues in good health for years to come.

Failing to Address Payment Matters Head-On
The most-cited medical practice revenue issue? Poor payment collection practices.

Maybe it’s a policy that must be promoted more prominently to patients. Perhaps it’s an office training matter, addressed by ensuring the administrative team collects payment once services are rendered.

Whatever the reason, it’s costly.

Imagine a practice that sees patients four days each week. Each patient has an out-of-pocket expense of about $50 per visit. If this practice misses just a single payment each day — conceivable in even modest offices — they’re looking at a potential annual loss of $10,000.

Now imagine how hard that practice would have to work to generate an additional $10,000 of revenue via a new service.

Solving This Medical Practice Mistake
A common complaint about the patient benefit verification process is the amount of time it can take. However, it’s crucial to ensuring your collections keep pace with your services.

Also, train your staff to assume payment rather than requesting payment. Not “Can you pay today?” but “How will you be paying today?” instead.

Misaligning Marketing Expectations
Many businesses fall victim to the assumption that a well-funded marketing campaign can produce immediate results. As if it’s the business equivalent of an “in case of emergency break glass” tool or “get out of jail free” card

It isn’t. Your business cannot simply turn on marketing efforts with a switch and expect instantaneous results. Even a single campaign can involve multiple moving parts including:

  • Facebook ads
  • Leave-behinds or sell sheets
  • SEO adjustments to the website
  • Blog posts
  • Client referrals
  • … and more

Determining the proper duration of online ads, which blog posts attract the most attention, the best way to seek and recognize client referrals, and the efficacy of any other tactic requires some time.

Impatience and misaligned expectations, though, can wreak havoc on any plan. That’s because they all require an element of consistency and persistence.

Solving This Medical Practice Mistake
Integrate marketing into your practice from the start and remain engaged in it. This does not mean you must invest a lot of money into it. It simply means you make it routine to a) advertise that you are accepting new patients and b) identify the most effective ways to get their attention.

A marketing plan doesn’t need to include high-priced commercials that air during a football championship game. It can involve:

  • The all-important word-of-mouth
  • A mobile-friendly website with health-boosting tips
  • Inexpensive postcard mailers
  • Receptionists who encourage check-ups and referrals
  • Encouraging patients to write online reviews

Relying on the Wrong Business Plan
Finding a business plan template online is as easy as finding a cup of coffee inside a Starbucks. Don’t let them tempt you, though. Every business, and every business owner, is unique. There are different goals, expectations, and markets to consider.

This isn’t to suggest that skipping a business plan is a good idea — it’s a terrible idea. But you need a business plan crafted to your specific practice, not something broadly developed to apply to many different businesses. And that’s even considering business plan templates for medical practices.

As the healthcare landscape continues to change, you’ll want a plan customized to allow adjustments to address ideas or service avenues you’re considering from the outset but aren’t quite ready to launch. These might include a concierge medicine approach, DEXA body comp scan services, or strategically teaming with other professionals such as registered dieticians.

Rather than seeking an off-the-shelf plan unlikely to be effective, develop your own.

Solving This Medical Practice Mistake
Business plan success requires putting together a team that can help you plot a roadmap to get you where you want to go. Members of this team may include an attorney, accountant, and insurance agent (especially important given today’s insurance needs). Bringing in a marketing company early is also a good idea for reasons covered in the previous section.

Add Complete Medical Services to Your Team

Building out a high-performing team of specialists requires less effort and expense than you might think. Especially when it comes to ensuring your medical practice starts strong out of the gate and continues a powerful stride.

Complete Medical Services is a strong addition to that team — especially if you want revenue options as the market continues into uncharted territories such as America’s aging population, challenges related to obesity and poor physical conditioning, and growing chronic pain issues. Contact us today to learn more.

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