Last week we shared some terrific cost-saving tips from the Practice Management Committee in Part one of our two-part series. This week we’re back with more! Get ready to boost your profits with these ideas from Practice Management Committee members:
Scott McCutcheon, MHA
- Negotiate lower costs on allergen extract by sending out a request for proposal (RFP) to all vendors to compare prices.
- Renegotiate all insurance coverage, including medical and malpractice insurance.
- Depending on market conditions, renegotiate office rent, particularly for short leases (within three years) to obtain lower rent and potentially extend the length of the lease.
- Review expenses and pause or eliminate noncritical items. Do the same for unnecessary capital expenditures.
- Consider pricing equipment, furniture, telephone sets, and other items on eBay.
Other suggestions from the Practice Management Committee:
- Consider ordering 6 months or more of extracts at one time to keep shipping costs down and to maximize discounts – but make sure you’ll use them before they expire. Extract costs go up every year.
- Scrutinize medical suppliers and individual products for deals. One practice noted their syringe distributor has a special pricing deal in the spring and fall, which lowers their syringe costs by close to 30%. They estimate the number of cases they use and buy six months’ worth at a time. (Note: be sure you have available storage space first).
- Implement a “credit card (CC) on file” policy. Ask patients to pre-authorize a CC for their visit. Your merchant service provider can pre-authorize an account for a set amount; say $600. The CC number is captured and stored safely on the processor’s website. After you receive the remittance, you can process the CC for the patient responsibility portion up to the pre-authorized amount. Bill the patient for any amount beyond that. (ACAAI note: Check out our free 15-minute Allergy Office Essentials educational modules, which provide key practice management advice on specific topics – including how to implement a credit card on file program.)
- For immunotherapy patients, keep a CC on file for recurring charges, and process any outstanding balances monthly. Call patients ahead of time before billing for additional vials, as these tend to be more expensive.
- Consider reducing offsite medical record storage fees by scanning old medical records into a scanning solution.
- For small practices, shop around to find favorable rates on supplies. Costco, Walmart and Sam’s Club sometimes have the best deals.
- Ask your main supplier to match the prices of competing vendors. When you find a better deal on medical supplies, ask your main supplier to match the price.
We’ve pointed out several ways to reduce expenses, but notice eliminating staff was NOT mentioned by any of our members as an opportunity for savings – despite being one of the largest costs.
The results of a recent Medical Group Management Association survey indicate that higher-performing practices have more total support staff per full-time equivalent physician. Don’t skimp on clinical support staff, since clinical staff can take on tasks delegated by providers that can improve provider productivity. Your practice’s most critical resource is provider time, so it’s worth spending a little more on clinical staff to maximize provider productivity.
Make sure you and your staff are working at the top of your licenses – on the most complex tasks that each of your licenses, training and abilities allow – rather than spending time on tasks that could be done effectively by someone with less training. Learn more about working at the top of your license.
