Financial Management Best Practices for your Practice

Physicians across the country are starting their private practice every day. While doing this, physicians find themselves not only consulting with patients but also find themselves donning many hats in order to run the practice successfully. From being the administrator to the HR to the finance guy, a doctor pretty much has to focus on all aspects of the practice to make sure it is running profitably and that patients are positively engaged. This challenge becomes greater when a doctor has multiple practices to run. Since financial strength is critical to keep a practice running smoothly here are a few finance management best practices that physicians should follow:

Assess all Charges

For proper financial planning, you need a comprehensive view of the charges of your practice. So, it is essential to identify every service that is performed and capture it in an electronic health management system. All vendors, nurses, technicians, staff should be trained to fill in the EHR documenting what services they provide and ensure that proper coding of the services has been done. You have to make sure that no revenue is left on the table owing to improper procedure documentation or wrong diagnosis codes.

Ensure Productivity

The mathematics here is pretty simple – the more productive your providers are, the more financial success your practice will see. Making sure that you have clear and efficient processes in place that enable productivity by ensuring that the entire healthcare ecosystem is connected across a common platform, requires minimal typing to fill and update records, has a central repository that stores attachments such as x-rays and reports in multiple file formats, are just a few ways to ensure this. Additionally, using a healthcare management system, you can foster collaboration by allowing electronic sharing and tracking of reports, lab orders, prescriptions, patient referrals to save time and increase the productivity of the staff. Medical practices also should ensure that the physician’s time is leveraged productively by making sure they are not double booked with a proper appointment management system that gives a consolidated look at the physician’s multiple schedules across multiple clinics.

Provide Clean and Accurate Insurance Information

Providing clean and accurate insurance information forms and very important part of good finance management practice. Making sure that all

insurance information and processes are in place and that all insurance related information is gathered the first time around should be on priority to ensure that the initial submission happens smoothly. Even the smallest mistake can lead to insurance claim denial which can lead to delayed payments which, in turn, increases costs by impacting the revenue stream. To streamline this process and also to identify areas of improvement in processes and systems it becomes essential to conduct periodic audits.

Warrant Effective Collections and Correct Accounting

Having an effective billing system in place forms the crux of a good finance management system. For this, the billing department of a medical practice should be educated clearly on the collection policies and the processes for the same. Along with collection of money that is entitled to the practice, billing departments also have to be properly guided on how to work on claims denials, follow up on aging claims, the process of collecting claims from patients, how and when to send claims to the collections department and when to write off a bad debt. All practices should have simple processes in place that are straightforward enough to understand and implement so that there is minimal resistance during documentation which is essential for compliance.

Implement Correct Accounting and Compliance

You cannot talk about finance management without speaking of proper accounting and compliance. Given that the current healthcare ecosystem has to navigate a rather treacherous compliance landscape, it becomes all the more essential to maintain proper records of all income and expenses. All inflows from multiple clinics, referrals, endorsements, consultation fees, transactions that happen on a daily basis should be properly documented. This will not only ensure that the end of year audits are completed without issues and taxes are filed correctly but also guarantee complete regulatory compliance.

Maximize Revenue Opportunities

Good finance management for medical practices should also look at avenues to maximize revenues. Evaluating contractor payer rates, negotiating best rates with vendors and maintaining cost structures become important components in maximizing revenue opportunities. Further, reviewing costs such as supplies, phone contracts, operational expenses and liability

insurance periodically helps in weeding out unnecessary outflows and increasing revenues.

Paying close attention to finance management aids the success of any medical practice. Ensuring that day to day operations are conducted smoothly are critical to implementing long-term financial goals and also to ensure long-term viability of any practice.

Image Courtesy : pixabay.com

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