Practice Management in a nutshell
Stat! This abbreviation of the Latin word meaning "at once" describes a quick response to a medical emergency.
But, it could just as easily be the sort of response demanded by business emergencies that sometimes confront doctors. The crisis may be staffing problems, a horrible accounts receivable picture, or an embezzling employee.
Very often these emergencies are created by not paying attention to the basic business principles required to make a success of any business and more so in the Medical Industry.
It is necessary for Doctors to have their fingers on the pulse of their business at all times by monitoring the financial picture of their practices.
These pictures are obtained in the form of reports that can be generated with the click of a couple of buttons in most Practice Management Software. With these reports in hand, simple questions will reflect whether the claiming, collections and general service within the practice need attention.
- Are they collecting at least 98 percent of all the accounts generated?
- Are less than 19 percent of their accounts receivable older than 90 days?
- Are overheads no more than 57 percent of receipts?
Based on this financial picture, decisions such as making use of a point of sale might result in a complete new picture of the practice. It might become a crucial part of the financial policy of the practice. Instead of the accounts receivable spiralling out of control, waiting for maximum 7 days for the credit card payment will increase the cash flow and free up staff for those other “need to do but never get to” functions.
Receiving the funds directly into your bank account also means less cash on the premises and less “banking trips” and bank charges.
Decisions like this should be based on the financial pictures generated out of your Practice Management software. For more information on how to generate the reports and how to interpret the figures that they give you, please contact your nearest branch.
