Practice tip of the week: Protecting revenue when costs rise

With all the useful information available on Physicians Practice, it is easy to become overwhelmed.

With this in mind, the tip of the week is a chance to reflect on some of the wisdom found all across the site. This April 2025 article on protecting revenue when costs begin to rise gives this tip:

2. Negotiate or re-negotiate supplier contracts

Why it helps

• Inflation and tariffs can inflate the costs in existing vendor contracts. Proactive negotiation can result in better pricing or more flexible terms.
• Open communication with suppliers can help you to understand cost drivers and explore potential concessions or alternative supply options.

Action steps

• Schedule annual or semi-annual reviews of key supply/vendor contracts.
• Request transparent cost breakdowns to understand price hikes.
• Pursue multi-year agreements to lock in prices, or consider shorter-term contracts if you anticipate rapid price fluctuations.

Click here to read the rest of the article and be sure to check back next week for another Tip of the Week!