The Other Way To Make Money

I talk with clients all the time about how to increase what they are collecting, but your profitability comes from both collections and expenses.

Here are some ways to look at your expenses easily and effectively to ensure you are not overpaying.

Any time you are looking for a new service, task your office manager to bring you 3 quotes. The office manager isn’t as invested in the financials as you are, so it is in your best interest to ask them to bring you three quotes and highlight the differences between services. By doing so you will have the information you need to make the best decision that considers both functionality and price.

Don’t blindly accept auto-renewal. When your initial contract runs out for a service, ask your office manager to call to inquire about changing service to another company and then ask them to call your existing service provider to ask for a better price. We’ve all done this on our cable bills, so consider it for anyone you do business with. New companies emerge that provide better service at a better rate and you will miss this opportunity it you don’t take time to make sure you are still getting the most competitive offer for every service.

Critically review your expenses and make sure they are really providing value. I recommend prioritizing your recurring fees and then looking at your one-time concerns. I worked with a practice that was paying a monthly fee to have a computer expert on hand to answer any questions, but the utilization of this service was far less than the expert’s hourly rate. They were over-spending by about $250-400 each month.

Review buying groups annually (at a minimum!). Vaccines are your biggest expense in a pediatrician's office and there are always new groups and new deals to be had. I have heard from some practices who review this with every order, it’s that important. So, be sure to check annually or quarterly to see if you could save on this tremendous expense with another plan.

Sometimes you do pay more to get more. Examples include staff or consultants that bring qualifications or expertise that saves you money. It may also include a billing service that charges 6% but provides far more work going after the claims that are more difficult to collect.

Expenses are something that can very quickly get out of control in any practice. I know sometimes it just seems easier to throw money at a problem rather than to fix it, but recurring expenses can put practices out of business. Always be mindful of what you are paying and make sure you are getting the value you expect.

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