The economy is tough all right, and many medical practices are frantically treading water in hopes of weathering the storm.
The economy is tough all right, and many medical practices are frantically treading water in hopes of weathering the storm. But take heart, there are some steps you can take to stay solvent.
First, prepare an annual budget, based on the assumption that revenue will remain constant from year to year. If you anticipate revenue declining or rising significantly over the previous year, make appropriate adjustments to your current numbers. Then, analyze your spending habits. Tighten up without compromising practice operations or patient service.
The highest cost of operating a medical practice is usually associated with staffing:
Once the budget is approved, review it each month and compare the monthly and year-to-date costs to actual budget numbers. When you are over budget, seek ways to manage costs so that you will be within budget parameters by year’s end. Judy Capko
is a healthcare consultant, speaker, and author of the popular books; Secrets of the Best Run Practice, 2006 and Take Back Time, 2008. Judy is the owner of Capko & Company, www.capko.com, based in Thousand Oaks, Calif. and can be reached at (805) 499-9203 or firstname.lastname@example.org.