All around us, we are seeing the cost of products and services- from everyday items to healthcare costs- on the rise.
A Physicians Practice Physician Compensation Survey revealed that 40.4% of respondents said that their overhead consumes 41% to 60% of medical practice revenue. This means that almost half of the respondents said practice overhead is nearing or exceeding half of their revenue.
Knowing this information, what steps can providers take to curtail their overhead costs? Experts suggest the best place to start would be looking at the profit and loss statements to see what is causing the greatest expense. Some possible strategies include:
Seeking More Competitive Employee Benefit Packages
Shopping around and searching for a more affordable malpractice insurance is a great way to possibly reduce overhead by thousands of dollars. Similarly, making adjustments to staff insurance plans can cut back on costs within the practice.
Patient insurance plans are also on the rise– with higher deductibles and higher copays. To improve the balance between overhead costs and revenue, the practice should always collect the copay at the time of the appointment, rather than billing it out later. Another option is setting up patients with a save on file payment plan, authorizing the practice to automatically deduct co-pays at time of service.
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Automated Insurance Verification
Automated insurance eligibility verification is a tool for practices that can be used to save time and money on verifying patient insurance eligibility. Instead of spending hours calling insurance companies to get coverage information, office staff can run batches with easy to use, cloud based software like PaymentCare, verifying insurance eligibility for several patients at a time. This type of software highlights the extent of the patient’s benefits as well as their required co-pay amount. Automated insurance verification also eliminates the element of surprise– both for the practice and the patient. The patient knows how much they will be expected to pay and the provider knows how the costs of the services will be covered. This innovation allows for both a cutback on overhead spending and a better patient experience overall.
Cross Training employees
Paying staff for administrative work is usually the heaviest overhead expense. Cross Training administrative employees is a simple way to expand on the employees’ skillsets while also keeping costs on track. When absences occur, staff can fill in and keep the practice running smoothly. Also ensuring that the time flow of scheduling is maximized, helps to increase savings potential.
Finding techniques and tools to minimize overhead and maximize revenue helps to create a more well balanced practice– implementing these strategies into the workplace should help with improving communication with patients and receiving payments, making changes that save in time and expenses for staff and in turn, overall decrease the overhead for the practice.
For more detailed information on how much your practice can save with the PaymentCare platform check out our Revenue Calculator today!