Ways to improve medical office cashflow
Cash or liquidity is important regardless of the business, its type, and the time we live in. This evidently brings up cash flow management and asserts how important it is for brands and businesses. The medical industry is one of the central industries of today that is helping tens of thousands of patients rejuvenate themselves, shake off their illnesses, and soak in new hopes to live. Such an industry also requires a proper cashflow, without which it simply cannot thrive.
Why are medical office cashflow and cash flow management important?
Medical office cashflow, as it is for any other industry, refers to the money or cash equivalent coming in and going out of the medical practices. The cash inflow refers to the money coming in as revenues for the practices. Medical office cashflow is crucial for medical practices for numerous reasons. Proper cash flow and cash flow management for the healthcare practices is important not only for the patients but also for the medical staff and/or employees, including the receptionist, the doctors, nurses, practice managers, owners, and everyone associated with the healthcare business. Without a proper cash flow, neither the patients can get quality healthcare services, nor the doctors and staff can be adequately paid to provide decent services.
Why are medical office cashflow and cash flow management important?
All of these are reasons enough to justify that proper cash flow management is important for the practices of today. Now, if you also want to know the ways to improve cash flow at your practice and manage the medical office cashflow effortlessly, then here is a list of proven ways that will help you do so without any hassles.
Smartest Ways to Improve the Medical Office Cashflow!
Ensuring proper cash flow management sounds great, but many providers cannot materialize it. This is mostly due to the absence of proper knowledge of cashflow, and cash flow accounting, which is crucial in the process of cash flow management. This is why we have decided to present some of the proven ways to improve the medical office cashflow. So, letâs dive into them without any further delay:
Request patient payments upfront
Recent surveys reveal that over 79 million American patients have problems paying their medical bills and have debts. Patient payments make a major bulk of the revenues for the medical, therefore, these payments need to be monitored closely. To ensure the proper reception of the payments from all the patients, the practices can request patient payments upfront, which will wipe off any delays or subsequent debts.
Send correct invoices promptly
Payment invoices are instruments that are integral for the practice payments. When it comes to payments, invoices play a major role in making them happen. These invoices serve as reminders for the patients and the practice staff for the pending payments and are also documentation for the same for future references. Thus, sending accurate invoices right at the time for the patients to clear their pending payments is a wonderful decision to ensure a proper cash flow management.
Make payment to the suppliers on the due date
Medical office supplies are rudimentary to maintain a decent medical facility. Medical supplies include a huge inventory of items that is needed to treat the patients and help them attain their regular requirements to help benefit their physical and mental well-being. This is why paying for the medical office supplies to the suppliers is a thing of huge importance. Here, though paying the suppliers in advance might seem challenging for the medical providers who are struggling to maintain a positive bank balance, the suppliers should atleast be paid their due on the due date to avoid debt or a bad name.
Cash flow accounting is crucial
Cash flow accounting implies the accounting or the monitoring and calculation of the funds coming in and going out of the office. A crucial step in the medical office cash flow management and if you are wondering about the ways to improve cash flow is the cash flow accounting. This accounting of the cash flow in a medical practice, should be done by experts, which would reveal numerous insights on which the medical practice can work to gear more to success!
Supply inventory should be minimized
As office supplies are required in bulk, many medical offices of practices or other healthcare units make the mistake of ordering too much for the inventory. This should be strictly avoided because ordering unneeded products not only leads to a loss of money but also takes up the office supplies space where they are stacked instead of any other consumables or equipment that is required. Try to minimize the inventory and keep only those that you need. This is certainly one of the most effective ways to improve cash flow!
Implement penalties for missed appointments
Research says that missed appointments or patient no-shows can lead to accumulate around $26000 in losses for small businesses with a $120,000 yearly revenue. Here, you need to understand that each no-show cost you time and money. This is why more and more medical units and practices charge money against the patient no-shows. Charging against missed appointments has developed into a standard practice across most industries, especially the medical industry. This is also helping the practices add to their cashflow, and may become a decent move to improve medical office cashflow.
Don't waste money on the office space
An office space is the primary requirement for a medical practice. However, the proper utlization of such a space is what is more important. Therefore, while going for a practice including a medical office and all the other facilities that will be required for the facility, choosing an optimum office space that would be fitting. Always make sure that your medical office space is just enough for your practice, without being too expensive or luxury.
Digital payments are mandatory
A vast majority (over 80%) of the global patients are willing to pay their healhcare providers online. The digital payments seem to have got another extraordinary boost with the Covid-19 onslaught, and even after the decline of the dangerous pandemic, the patients will still be overcome with the terror, threat and the convenience that they have enjoyed with the rise of digital payments. All of these makes digital payments a winning move, boosting medical office cashflow. To enable each and every practice make this winning move, GrowPractice is here, empowering the medical practices of today offer fast and easy digital payments via instant SMS payment links. This is built in order to improve the collections for the providers, and minimize the loss of practice revenues.
Discounted cash flow analysis
Discounted cash flow can be defined as the valuation estimate that is got by calculating the value of the investment on the basis of the future returns it will beget. Getting a clear overview of the discounted cash flow have saved practices on numerous occasions from getting doused in losses or making unsuccessful investment.
Some other important improvements that you can bring to your practice to improve cashflow are:
• Having flexible payment options
• Setting faster deposits with the bank
• Laying out the credit policy clearly
• Having trustworthy employees
• Choosing a reliable provider for revenue cycle management
• Collecting all the relevant patient information before appointments
• Monitoring the credit eligibility and outstanding payments before appointments
• Following up for collections
How GrowPractice help improve medical office cashflow for practices?
If you are looking to revamp the medical office cashflow at your practice, then you need not worry because now we have GrowPractice by our side. The trusted medical office solutions, patient and practice management software provider, is helping countless practices today to boost revenues. Cash flow accounting will now be interesting really with GrowPractice, which will enhance the practice revenues.
Here are some prominent ways via which GrowPractice is easing the ways to improve cash flow:
• It is helping practices book patient appointments with just a click.
• GrowPractice is enabling the patients enjoy all the digital benefits
• Patients are getting a wide range of payment options
• It is helping patients stay engaged all the time
• GrowPractice is bringing in secure, HIPAA-compliant software and systems to empower the medical offices of today
• It is providing effective integrations with more than 65 EHR and PM software
• GrowPractice offers customized patient workflow
• It is making possible fast and efficient patient check-ins and intakes
• GrowPractice provides efficient patient satisfaction surveys and reviews
GrowPractice has already added $60,000 more revenue per provider who has opted for GrowPractice. Besides, it has also helped the collection rates of the healthcare providers surge to over 20%, owning to the quality service it has provided patients with. Furthermore, 97% of the patients are also satisfied with GrowPractice's improved solutions and nearly 50% of the patients are being retained with the help of GrowPractice. So, don't wait for miracle to happen, choose GrowPractice's proven medical software and systems and forget all your hassles involving cashflow.
