You work hard at your practice to increase your medical practice revenue and profits. Not only do you pour all your energy into helping people, but you’re trying to build a business. Satisfaction from serving patients is one thing, but you want your practice to thrive and grow as well. Luckily, you can have both. Other practices have problems generating the revenue they need. So, learn from their past struggles. Your medical practice already has the one thing that it can’t be successful without: you.
Often, doctors and managers get caught up in keeping up with the day-to-day grind. Then, they don’t see a path forward to increasing revenue from their practice. It’s important to step back and look at some simple ideas that have been used previously to increase revenue while not bogging you down with extra work. Below, we’ll look at a few of these ways.
Evaluate Overhead to Increase Your Medical Practice Revenue
You need a proper facility and equipment to increase your medical practice revenue. However, overhead can be massive in the medical field, with operating costs often making up 50-60% of total revenue. Facilities shouldn’t be too large. In most practices, any more than 2000 feet per doctor is excessive and leads to inefficiency and larger overhead costs. Obviously, this depends heavily on what type of practice, but any facility should be evaluated for wasteful real estate costs.
Medical equipment also can drastically increase overhead. While medical equipment you stock your practice with is incredibly diverse, the common thread is usually how expensive it is. Carefully tracking inventory and keeping a good storage organization can reduce waste from buying equipment and supplies that you don’t need.
More Patients and New Patients
This one may or may not be possible depending on how busy your practice already is. Squeezing in one extra patient a day through more efficient scheduling increases your medical practice revenue. If you think that it will be difficult to incorporate this strategy or may cause your quality of care to suffer, you can consider opening for a half-day on a weekend. While weekend hours can increase overhead and payroll, your patients will appreciate the convenience and this could attract new patients who are busy during the week.
Continue to introduce new patients regularly into your practice. Shoot for 10% of patients being new if possible. If you’re not actively seeking new patients, you’re asking for your income to reduce as your current patients move on and no longer need your care. Taking on massive influxes of new patients can be stressful to your staff and cause overtime and increased staffing costs, so it’s important to try to see new patients every week, or even every day if possible. Your new patients are the future of your practice, and you should invest in them now.
Analyze Your Insurance Claims
As the bulk of your payment from patients will come from insurance claims, this is where your revenue stream can really be made or destroyed. Claim denials can be costly, and underpayments and delayed payments can leave your practice lacking revenue it should’ve had. Partnering with someone familiar with streamlining insurance claims can help massively. A partner like Gentem has tried and tested methods of minimizing claim denials and simplifying the approval and verification process to make sure you get what you should from insurance companies.
Learn More About Increasing Your Medical Practice Revenue
You shouldn’t have to stress about how to increase revenue when insurance companies are denying you pay for the work your practice has already done. Making your practice more efficient can help give slight boosts to revenue over time. However, if you aren’t getting paid for treatment you’ve already given then any work you do on increased profitability within your practice will likely not be very effective.
At Gentem, we know all the ins and outs of medical billing and have helped many practices solve the problems in their income streams so that they can get back to concentrating on doing what they love- helping patients. Sign up for our free revenue cycle/billing analysis and see how much we can help you today.