A medical practice is a business, but many doctors don't run their medical practices like businesses since they are so service-oriented. It's easy to lose focus on finances in the midst of patient care and privacy compliance, but a transition to a more businesslike approach will pay off in the long run.
Create a Budget and Financial Projections
New medical practices are often run by the seat of their pants, trying to break even each month and make payroll. Making a budget will give you a plan for your money each month and a way to compare months and seasons so that you start to develop a reasonable expectation for your income and expenses. Of course, the numbers will vary, but budgets are still helpful for financial management.
Financial projections show where your practice will be in the future based on how it has done previously and trends that can be observed. Projections are never a sure thing, but they can give an indication of what can be expected if conditions don't change in a significant way. Financial projections can allow you to develop a strategic plan for the future. Projections and strategic plans should be reviewed every year.
Marketing and Insurance Contracts
The two main ways to get new patients for your practice are through marketing and insurance contracts with different insurance companies. Insurance companies send patients your way with directories on their websites without much effort, but marketing is still necessary to get a sufficient number of patients coming through the door.
If you don't have time to devote to a comprehensive marketing campaign, it would be wise to hire a marketing company to help with this important aspect of running a business. Doing it yourself is always more economical, but unless you have another staff member with marketing expertise, the DIY approach may take significant time away from seeing patients.
Making Use of Technology
60% of solo practitioners do not yet have an EHR (electronic medical record) system according to Physicians Practice. Integrated systems for EHR, practice management and billing/coding can save your staff significant time, which will save you money in the long run. Having current technologies and equipment will also help attract customers.
Another aspect of technology that also integrates with marketing is an updated website and social media pages. Most prospective patients check out potential doctors' websites prior to contacting them directly. Additionally, connecting with patients and prospective patients on social media helps them understand what you are all about and develops loyalty to your brand.
Financing the Transition
A common saying in business is that it takes money to make money. A medical practice may need to hire an accountant or financial advisor to help with making a budget, projections and a strategic plan. Other expenses may include marketing help, the cost of electronic health records, and website/social media development.
Spending money on these improvements will benefit your practice in the long run as you attract new patients and manage your resources more efficiently, but coming up with cash up front can be tough. A business cash advance can provide working capital to invest in your transition to a new business model, which will increase overall cash flow and provide the means to repay the advance.
Quikstone Capital Solutions provides business cash advances to businesses that need working capital to make improvements. Apply now and have your cash in as little as one week.
