Tracking and Optimizing Costs in
Your Medical Practice
By Apurva Komandur
Medical practice costs are an easy yet crucial metric to be aware of for a practice’s financial health. The first step is to know your costs. Being able to answer patient questions about costs for services or knowing about percent of overhead allocated to staff salaries is extremely important. Additionally, measuring your practice’s costs compared to national averages and keeping track of costs on a monthly or quarterly basis is also highly beneficial. Tracking costs in this manner can help identify the need for corrective measures, reduced costs and improve business operations.
Knowing the types of costs is also helpful in examining ways to increase the bottom line. Fixed costs are those which do not change regardless of number of patients. Variable costs are those which increase with the number of patients seen. Both types of costs have an impact on the breakeven point and bottom line of a practice. Monitoring these figures on a regular basis can help determine where to control costs, which can improve efficiency and growth.
To learn more about medical costs, how to optimize and track costs, and a 12-point checklist for controlling costs, click here to watch the video or view our additional resources below.
Handle Patient Billing In-House?
Take a Look at Our CareTracker Practice Management Solution
CareTracker Practice Management allows you to efficiently run your practice and ensure you aren’t leaving dollars on the table. By quickly identifying coding inconsistencies prior to claims submission, electronically confirming eligibility and claim status, and easily identifying unpaid claims, you can feel confident you’ll maximize reimbursement for the work you do. There’s even a dashboard to track your progress and alert you to pressing items – leaving you more time to concentrate on your patients.
To see how you can improve your practice’s billing processes, click here to learn more about CareTracker Practice Management.
Improve Your Cash Flow with
Revenue Cycle Management
For physicians, the prospect of delivering high-quality medical care, while simultaneously reducing internal costs, can seem to be contradictory objectives. They can, of course, carefully control overhead costs, watch staffing expenses and negotiate vendor contracts, but some factors might be out of their control, such as malpractice premiums. One factor that can, however, be managed efficiently is the revenue cycle. This is the concept of getting paid a proper value for services provided and collecting that money in a timely and efficient manner so ongoing office expenses can be covered without borrowing money.
To learn about Revenue Cycle Management and how it can help your practice experience fewer billing problems, increased claims paid, and improved cash flow, click here to read our white paper.
Apurva Komandur is a student and Marketing Intern at Amazing Charts. She is interested in sharing valuable information to help practices flourish.