Cash flow issues are something most business owners will have to deal with at some point in time, and medical practices are no different. Whether you’re in a specialized field and have to struggle to find a steady clientele, a new practice trying to make a name, or you have simply made some errors, cash flow irregularities can happen, and they affect your business in so many ways. The good news is that there are actions that you can take to correct these issues and stay on top of your finances. Here are a few things practices can do to deal with cash flow issues.
Cut Your Costs
The first thing you should do is look at where you could be overspending, and make the correctives necessary. How efficient is your workflow, and do you still do a lot of things that could be automated? For instance, you could save a lot of phone time by allowing your patients to book their own appointments through an online portal.
These will also allow patients to check their billing history and lab results on their own among other things. Just doing this could make a significant difference on staff workload. As a matter of fact, one practice owner stated that they were able to save up to 20% in staffing costs in 2 and a half years since instituting their online portal. So, if you haven’t done so already, implementing an online portal could be one of the best decisions you’ll ever make.
Look into Financing
Another thing you could do if you’re having cash flow issues is to look for medical practice financing. There are many reasons why you may need some extra cash. Some practices may need working capital while they’re waiting on claims. In this case, they can use medical factoring to borrow against these claims and repay once they’re paid. Some may desperately need a piece of equipment, or may need to invest in publicity.
These are all sensible reasons to seek financing, as they will not only allow you to stay afloat, but help you towards growth. If you’re looking for financing for any of these things, then you should be able to find financing as long as your finances and business credit are in order. You could also consider secured loans if you have equity in some assets.
Upgrade Your EMR Technology
You also have to make sure that the EMR system you use is up to date. It’s important for medical practices to upgrade their EMR software regularly to enhance coordinated care and improve patient outcomes. Using these systems will reduce the need for additional staff, and will reduce the chances for human error. These will eventually translate into savings on operational costs, and a better cash flow.
Cash flow issues are never easy to deal with, but there are solutions. Make sure that you look into the ones we proposed, and reconsider your processes and finances to see where you can improve.