Each new year brings the opportunity to reflect back on the previous year and outline successes and areas of improvement for your medical practice. From this reflection comes ideas and resolutions on how to better manage your practice in the new year. If your medical practice management resolution for 2017 is to increase profits, Applied Medical Systems (AMS) may be able to help. Below are 3 resolutions to aid in running an effective, efficient, and profitable medical practice in 2017.
2017 Medical Practice Management Resolutions:
1. Reduce Overhead Costs
If one of your 2017 practice management resolutions is to reduce your overhead costs in order to reap greater profits, you are not alone. For many medical practices, reducing costs is the first step they take when working to increase profitability. However, knowing where to make cuts can be difficult. AMS specializes in profitability and overhead management and can guide you through the process. Below are a few tips for reducing overhead costs this year.
Office space can be pricey. If you are leasing your space, you may be able to better utilize or even cut down on the square footage available. One way to reduce overhead costs would be to relocate your back office staff, such as your medical billers, to an offsite office with a lower cost per square foot. The freed up space could be used for an extra exam room, which would help return greater profits.
One way to cut overhead costs is by reducing spending, such as on medical supplies. If you have been using the same vendor for many years, it may be time to shop around and compare prices. Even if you have a great relationship with your current vendor, simply letting them know you are going to price competitors may be enough motivation for them to cut you a better deal.
Paying staff salaries can be costly. That is why it is important to have not only the right number of staff, but the right people in the right seats. If you are a small office, you may not need as many front office employees or nurses as you currently have.
You may also be able to reevaluate the type of staff you employee. You may have registered nurses (RN) x performing tasks that could be easily completed by medical assistants (MA) for a fraction of the cost. Keep in mind that software is less expensive than people. You may be able to cut overhead costs by outsourcing your medical billing to a trusted company, such as AMS.
2. Receive Reimbursements Faster
If you have been struggling with accounts receivables, 2017 is the year to decrease your days receivable figures. The first step to getting paid faster is to reduce denials. Luckily for you, AMS has collaborated with a variety of technology partners to maximize our ability to submit clean claims, collect patient payments online and reduce (or even eliminate) denials.
Denials can make up to 30% or more of a practice’s billing. That can be overwhelming for any biller to process, which is why AMS utilizes a unique progressive denial prevention system that currently allows us to submit clean claims more than 95% of the time. AMS uses front end rules and edits specific to providers and payors to get the claim paid the first time. However, when pesky denials happen, we utilize a paperless denial queue that allows us to resolve denials more efficiently, effectively and faster. And then we write a rule or edit so we don’t get that same denial again. When you outsource your billing services to AMS, you will see a decrease in days receivable in no time.
3. Update or Implement Practice Policies
If increased profitability is on your list for 2017, then another 2017 practice management resolution should be to update or implement practice policies. Practice policies are statements of principles and practices that act as a frame of reference for how the organization operates. Having reasonable, purposeful policies are crucial in running an organized, profitable practice. They not only help to ensure uniformity when dealing with certain situations, like missed appointments, but they also aid in fostering stability and continuity.
If you are ready to implement effective workplaces policies that are inline with the best practices of your organization, AMS is a great resource. AMS has vast experience in creating and assisting practices in implementing and enforcing practice policies.
If you are ready to increase profits in 2017, AMS is here to assist your medical practice. We offer an extensive list of services tailored to fit the needs of you and your unique practice. Contact us today for a free quote or to learn more.