Finance & Enjoyment Blog

Maximize Efficiency and Revenue at Your Denver Medical Practice

Maximize Efficiency and Revenue at Your Denver Medical Practice

Whether you are a sole practitioner doctor in the process of starting a new practice or you are an existing medical practice with years of experience, increasing revenue can seem like a daunting task. You might think you are doing everything right—cutting expenses, monitoring annual reports, contracting professional accountants—but money keeps slipping through the cracks, and no matter how hard you work, your profitability stays put or declines. If you think you have already tried everything, read these clear steps and suggestions and see whether you can still change your practice management to maximize revenue and efficiency.

First, before anything else, make sure you and your employees are putting in enough basic hard work to cover overhead expenses. That means getting to work on time, filling up your schedule, minimizing no-shows, and doing all the necessary work to produce sufficient revenue.

Do not consider adding new employees, branches, or responsibilities to your firm until you make sure that what you already have is efficient and self-sufficient. Create an annual budget, analyze and balance your revenues and expenditures, and then you can think about changes your practice can make to generate extra revenue.

Creating this revenue might demand less dramatic reforms than you had imagined. If you have made your practice self-sufficient, then rapid expansion might seem reasonable, but it can also become a huge financial drain that, even if it looked promising in the long-run, can cause an immediate and unsalvageable financial burden.

Cutting expenses can also seem like a viable way of increasing profits, but it can hurt your practice’s quality of care, decrease levels of employee and patient satisfaction, and load too much work onto remaining employees. Actually, the simplest and most effective way of increasing revenue is by collecting and monitoring that revenue well. Create a quicker billing process; find financial planners who know the field; and regularly review all government and insurance contracts.

Also, be sure to protect your practice from fraud or embezzlement. The average organization loses 5% revenue to fraud, waste, and abuse, and with the amount of transactions that medical practices make, their loss is even higher. Introduce internal control procedures like periodic payroll reviews, employee responsibility segregation, reviews of new vendors, scanning bank statements for oddities, and requiring offsite employee vacations. Following these steps will maximize your Colorado practice’s efficiency and revenue.


Posted in Successful Practice Management »



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