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Cost-Cutting Tips For Medical Practices

October 29, 2018 Comments Off on Cost-Cutting Tips For Medical Practices

Support staff is often the biggest overhead expense for medical practices so determining if the practice is overstaffed and subsequently trimming the fat where possible can yield substantial savings. Instead of eliminating jobs, can existing staff members such as receptionists, nurse practitioners, and physician assistants be utilized to make doctors more productive? For instance, could receptionists pull and re-file charts for the medical staff increasing efficiency?
Analyze annual raises. Each position should have a competitive median salary range based on the location and industry. If an employee reaches the high end of their salary range, try implementing incentive-based bonuses instead of an automatic raise. Or give them more responsibility to justify a raise. It’s imperative to ensure employees are working efficiently and resourcefully for the salary they earn.
Achieve significant savings by sufficiently recording employee vacation and sick paid-time off – practices literally spend thousands each year in overtime costs because they do not adequately keep track of each employees paid leave.
Re-evaluate supply costs and implement strategies designed to reduce them without forfeiting quality or hampering the needs of doctors and nurses. For example, standardize supplies and medical equipment which allows you to purchase in bulk thus affording you a lower price for each item or unit. Perhaps switching vendors altogether will deliver the most significant savings – research the affordability of online medical supplies vendors or other competitors in the market. Also, make sure you have a well-organized inventory management process in place to ensure you don’t have costly supplies that aren’t being used.
Consider alternative staffing options to minimize costs. Outsourcing jobs such as the transcription of charts and files, bookkeeping and accounting, and payroll processing is typically much less expensive than hiring in-house.
Asses rental and lease agreements and negotiate terms with your landlord when your lease is up for renewal. You should also evaluate your current square footage needs; do you need as much space as you currently have or can you sub-lease or share extra space with another practitioner to save costs?
If you haven’t done so already, consider utilizing medical billing software to streamline and accelerate billing and other practice management tasks.

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