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Balancing The Books Of Your Healthcare Business

While running a healthcare business can certainly be lucrative, it can also be very expensive. As such, careful attention needs to be paid to your balance to ensure that you’re able to turn a profit. Here, we’re going to look at some of the strategies, from the revenue streams that you can maximize to the costs that you can cut, that can help you do just that.

Just keep in mind, as you’re reading, that you have to focus on providing positive health outcomes and ensuring patient satisfaction above all else. Making changes that diminish that might help you balance the books temporarily but could lead to more trouble down the line if you start losing patients.

Find where you’re losing your money

If your finances aren’t currently looking healthy, then the first and best thing to do is to reduce your losses and manage expenses more efficiently. Of course, to do that, you have to find where they reside, first and foremost. One of the most negative sources of losses, for practice and patient alike, is the denied claim. Claim denials happen all too often, and it’s just as often due to how the hospital filed them as it is the insurance company. Finding out the reason for preventable claims loss should be considered a priority.

Find new revenue streams

One way to help get the books back in your favor is to look for ways to bring more money into the practice. Of course, that’s easier said than done. However, there are ways to bring in more revenue without having to invest a lot in new equipment or personnel to carry it out. For one, you start selling products in your waiting room, from magazines and food to cosmetics and over-the-counter medicine. Otherwise, you might want to look at participating in medical trials in the future.

Sell underused equipment

It is possible that you initially invested too much into building the business, initially. If you have too many staff, you may need to reduce your numbers. Similarly, if you have too much equipment, especially equipment that you’re not using enough to justify their cost, then it might be time to let them go. If you need to sell used dialysis machines, ensure you’re selling to specialists. That way they are more likely to see and pay the full value of it, compared to others who might offer less.

Focus on bringing patients back

When it comes to growing the revenue stream, a lot of attention will go towards expanding your market and growing your patient list by reaching out to those who might not be aware of the services that you offer. While this can be a valuable use of effort, of course, it can often be done to the detriment of your existing patients. By keeping in touch with existing patients, be it through scheduling check-up calls for months after their last visit, to creating an informative newsletter for them to stay up-to-date with health risks, you can make them a lot more likely to keep coming back. It always costs a lot more to win a new customer than to retain an existing one.

Be more mindful of malnutrition

You might think that readmissions of patients that you had previously treated will help you gain more revenue but, in reality, they are a serious source of costs. Not only can they directly affect your bottom line, but a patient is less likely to be satisfied if they’re constantly coming back because your team missed something. All too often, the thing that medical teams miss is malnutrition. Being more aware of the signs of malnourished patients can help you see them out the door, and not to come back until there’s something else wrong.

Be mindful of how you bring new labor

At times, you are going to find that you have a need for additional staffing. If there’s an outbreak of a new virus or healthcare scare in your area, then demand for your services is going to shoot up. Don’t make the mistake of immediately hiring new permanent staff for needs that might be temporary. Look into working with a hospital staffing agency to find temporary workers, first. If you start developing a long-term need for more staff, that’s when you get the hiring process rolling.

If you’re having trouble managing your practice’s books, then you might want to get the help of a bookkeeper who can help you do it. Learning business finance is always wise for an entrepreneur, but that doesn’t mean having to go it alone.