The health of any business is a result of a proper balancing of income and expenses so as it ensures profitability and stability. Market dynamics like competition, pricing, consumer needs, and preferences, product and service innovations, and industry regulations all lead to significant changes in the success of a practice.
While the thumb rule to increase practice revenue is to remain focused on billing and collection of all Urology practices, a secret to success also lies in reducing the cost incurred by pharmaceuticals, medical supplies and equipment’s, etc. Saving on clinical costs can be revolutionary for any Urology revenue cycle.
As a chief cost reduction strategy, it important to put in place an inventory control standard for supplies. The office staff needs to be able to accurately estimate the inventory needs and order only up to the control standard. There needs to be a ban on any wastage expenditure when it comes to inventory to save increasing costs.
If there is a competition among vendors to sell the same kind of medication, the practice must research the subject and settle for the least expensive alternative. Expensive medications need to be turned over quickly so as to keep carrying costs down. Special attention is required for pharmaceutical expiration dates, rotation of stock, and spoilage, etc. An effective inventory management program helps to tackle these issues.
Group purchasing Organizations or Buying through Associations also helps urology practice to save up on costs. These groups can help your practice in procuring material, supplies, services, or even pharmaceuticals at slashed pricing. However, there is a need to closely scrutinize the contract before entering any such associations to make sure there are no underlying boundations like restrictions from buying anywhere else, etc.
Tackle No Shows
Every Urologist would admit that missed patient appointments i.e. no shows contribute immensely in hampering the productivity of the clinic and show adverse results in terms of revenues. The front office staff needs to make it a practice to contact patients in advance of their appointments. This not only reduces no-shows and last-minute cancellation rates but also aids in sourcing payments from risky patients.
There are a host of companies and practices that go out of business and try to sell their furniture, office, and medical equipment online. It’s a cost-effective method to purchase these second-hand goods and to put them to use. Not only does this allow your practice to be fully equipped but so at lower pricing altogether.
A direct method of increasing revenues would be to employ certain cost-saving strategies at your practice. Telephone services, waste disposal of bio-hazardous substances, and other expenses like paid time off, overtime, insurance benefits, etc. need to be managed efficiently to save overall costs.
The cost of certain procedures like botulinum toxin preparations for urinary incontinence has been inconsistent in the past. Thus, it requires tracking. In case the rises quarterly, however, the payers are charged the same rate for a while, a practice’s revenues might shake. Centers for Medicare & Medicaid Services (CMS) website publishes the necessary data that you need to estimate the cost trends.