BY Catherine Lightfoot, EEPB, CPA Firm, Houston, Texas
As we settle into the Texas summer, many are making plans to retreat to a cooler climate—even if for a short reprieve from the heat. Mid-year is also a great time to schedule a Strategic Review of your medical practice. Taking a hard look at four key areas can bring significant revenue increases and/or cost reductions to your business.
Compare revenue, overhead, reimbursement, and productivity to others in your specialty.
The top twenty CPT codes that you use in your practice should be reviewed in detail, asking the tough questions. Are you getting your contractual rate on these codes? Is the reimbursement enough to cover the cost of providing that service? Is the documentation sufficient for the code charged? Would it stand up under the scrutiny of an audit? A review of a statistical sample could provide valuable insights into revenue leaks or compliance issues. Use the results to shore up any gaps, maximize productivity, and improve your financial position.
Evaluate competitors’ strengths and weaknesses, and how you can gain an edge.
Today, website analytics help assess not only your web traffic but that of others. Have your marketing group send you an SEO report for the main keywords being used to drive customers to your competitors’ websites. Take the time to visit those websites to gather intelligence. Are they offering services that you could add to your practice? Do you have programs that could be expanded to gain more of a competitive edge? Are there programs that should be discontinued because they are cost-prohibitive for the advantage they offer? Make adjustments accordingly to remain competitive.
Review the patient’s experience and how to improve it.
Following heavy reliance on remote medical care during the pandemic, patients are now returning to in-person visits. The post-COVID virtual world, combined with the Amazon Prime next-day mindset, has rendered most patient waiting rooms obsolete. If your waiting room environment still looks and feels like it did ten years ago, you have a lot of work to do. Think HGTV modern furnishings, multiple TV monitors, and perhaps a beverage bar. Track the patient flow cycle time on multiple days and streamline the process, whether it be better scheduling or movement to other rooms within your office suite. The goal is to prevent a long wait time for patients and make the waiting experience as comfortable as their living rooms.
Assign specific accountability to achieve these initiatives and a plan to follow up on them.
Strategic planning sessions are not worth the time or trouble unless they produce specific, agreed-on assignments (roles and responsibilities) and reporting timelines. Start with a few key action items from each of the three areas discussed above and get buy-in to delivering results. It also helps to assign an accountability partner and a deadline for completion. Remember, strategic plans should not overwork employees who are already stretched. However, incremental actions taken by a number of staff members can reap great benefits in missed revenue and saved costs over time. Rome was not built in a day, but you have to start somewhere.