Cutting overhead without cutting staff
✔ Review vendor contracts for automatic price hikes
✔ Reassess supply ordering to prevent waste
✔ Shop around for services like Internet, cleaning, and copier maintenance
✔ Eliminate wasted energy and reduce no-show or unused appointment slots
✔ Integrate EHR with patient engagement, telehealth, and billing tools
✔ Consider outsourcing billing to improve collections and free up staff time
✔ Create and review a practice budget monthly to catch small issues early
✔ Look for underused office space and consider subletting or repurposing
✔ Redesign staffing mix with NPs, PAs, or scribes to improve efficiency
Running a medical practice in today’s environment is a balancing act. Overhead expenses—rent, supplies, technology, insurance, administrative costs—keep climbing, while reimbursement rates remain stubbornly flat. The instinct for many administrators under pressure is to reduce payroll, since staff salaries and benefits account for such a large slice of expenses. But cutting employees can be short-sighted. Fewer hands on deck often means longer wait times, lower morale, reduced patient satisfaction and, ultimately, less revenue.
The good news is there are ways to rein in costs without resorting to layoffs. Many of the most effective strategies involve looking closely at how the practice already spends money, from energy use and vendor contracts to scheduling and technology integration. Savings are often hiding in plain sight.
Experts say overhead in physician practices can vary, but the actual drivers often come down to recurring expenses. A single line item—such as a copier lease, a group purchasing contract, or an unmonitored supply order—can quietly chip away at profitability. The challenge for administrators is knowing where to look and how to act without disrupting patient care.
Small shifts—renegotiating vendor terms, closing scheduling gaps, tightening budgets—can add up to major gains. Practices that adopt a proactive, systematic approach often find they can maintain staff levels, boost efficiency, and still come out ahead financially.
With that in mind, here are nine practical ways to cut overhead without cutting staff.
