Five ways to improve the financial state of your medical practice during uncertain times
The fourth quarter is often a time to reflect on the past year and look ahead to the future. And for many, that future may be uncertain given the increase in payer denials, rising costs, proposed payment cuts for calendar year 2025, and ongoing healthcare staffing shortages. Despite advances in value-based payment reform, the American Medical Association and others say it’s not enough to help sustain today’s medical practices. Fortunately, there are ways to gain control and improve medical group financial performance.
Revenue management tips for physicians
Here are eight revenue management techniques for physicians that can help improve the financial state of your medical practice.
1. Properly manage cashflow. Without smooth and consistent cashflow, even the busiestmedical practices may struggle to thrive. If cashflow is a problem, take the time to examine why. Do you struggle with timely filing of claims? Requests for additional documentation? Denials? Drill down into the root cause of the issue and gather your revenue cycle management (RCM) team members to identify potential solutions. While you’re at it, be sure to track medical practice expenses and create a realistic budget. Identify areas where you can cut costs without compromising essential operations and patient care quality.
2. Renegotiate payer contracts. If your medical practice is one that rarely asks for a rate increase, it’s time to rethink that strategy to improve the financial state of your medical practice. Even a small increase can add up over time and provide a financial cushion or emergency fundwhen you need it most.
3. Strengthen your online presence. To improve medical group financial performance, you must be willing to modify your marketing plan, one component of which is online marketing. While word of mouth is still important, so is the ability for patients to find your medical practiceonline. Does it make sense to invest in a website upgrade with search engine optimization? What about leveraging social media or Google ads as part of your strategy to promote revenue growth in medical practice?
4. Diversify your services. To strengthen your business finances in uncertain times, you may want to consider providing patients with diverse and comprehensive offerings such as telehealth, chronic care management, or e-visits. Doing this allows you to connect with a broader range of patients, expand market reach, and make your medical practice less vulnerable to economic fluctuations.
5. Strengthen patient relationships. During times of uncertainty, loyal patients may be your greatest asset. Focus on patient retention by through stronger patient-physician relationshipscentered on personalized communication, empathy, price transparency, and self-service tools.
6. Invest in technology and automation. Looking for ways to improve efficiency, cut costs, and support revenue growth in medical practice? Automation is one of the most effective revenue management techniques for physicians. In addition, revenue cycle automation can reduce manual errors, enable staff to focus on more strategic initiatives, and even improve patient flow. Revenuemanagement tips for physicians are also inherent in RCM technology, helping physicians document correctly and choose the correct medical code.
7. Monitor financial key performance indicators. You can’t improve financial performance if you don’t have a baseline or the ability to track improvement over time. Identify what RCM metrics matter most to you and start tracking your data regularly.
8. Give coding and billing the attention it deserves. Medical coding and medical billing are two of the most critical functions in any medical practice. That’s why they deserve your time, attention, and financial resources. If you can’t recruit and retain enough certified medical coders, it’s time to consider outsource options. Or even if you can, you may still want to consider outsource partnerships to take advantage of cost savings and other benefits that can aid medical group financial performance.
Looking ahead to improve the financial state of your medical practice
Uncertain times can be challenging, but they also present opportunities to improve and enhance your RCM processes. With a proactive approach, your medical practice will thrive even in the face of uncertainty. Learn how edgeMED can help.
