How to reduce Medical Practice Operating Costs

Trying to reduce medical practice operating costs can be a challenge at times. A medical practice is a business. Keeping tabs on the operating costs can often seem essential to keeping the doors open.

The key for a doctor to reduce medical practice operating costs is to be aware of the expenses of the medical practice. Know what it costs you to run the business. Know why those costs are essential, or at least important.

Here are three tactics to reduce medical practice operating costs and increase revenue in your practice.

1) Look at your costs for Reimbursement

Many doctors don’t consider that their reimbursement methods may actually be costing them money. If you take a look at inconsistent payers, you can streamline them to improve your bottom line.

A part of being on top of reimbursement costs is being aware of contract changes.  Consult your team and ask if they feel they are putting more time and effort into billing than before. If the time taken to process claims and collect payments is continually creeping up, this can cause extra expenses.

If your current reimbursement model is costing you too much of your profit, consider a new reimbursement model can an alternative.

2) EHR and Telemedicine Technology

You may be surprised to know that you can cut down on administrative costs by switching to an automatic reminder system. You can now select an EHR with built-in Telemedicine, or that automates billing or has built-in insurance verification. These built in EHR tools will free up your front office staff’s time, so they can focus on patient care instead.

Also consider that you can reduce your operating costs and increase your productivity through telemedicine technology. Spend less time waiting on patients in the office (and have patients spend less time waiting on you) by triaging smaller medical issues to billable telemedicine visits.

3) Renegotiate Vendor Costs

If you’ve used the same equipment and medical supplies vendors for a long time, there’s a good chance you could find a better deal by shopping around.

It helps to ask yourself what your vendor brings to your practice. Some can provide repair, training and troubleshooting for equipment.

When it comes to supplies, ask yourself if your vendors add knowledge and consulting.

Your relationships with your medical suppliers and vendors are important, so it’s not a matter of trying to nickel and dime them. But there is nothing wrong with getting quotes from other medical vendors, and checking they are providing top value. You might be surprised that when it comes time to renew your contract, your suppliers are more open to  renegotiate.

Stay Focussed to Reduce Medical Practice Operating Costs

These are just three simple ideas the get you started. The ability to reduce medical practice operating costs is essential to the long term success of your business. The more money you keep, the better you are able to fund your own lifestyle. You can also reward the team that works hard for you. It is essential to keep your finger on the pulse of expenses. Reduce Medical Practice Operating Costs if you want a thriving medical practice.