If you have been in the business of healthcare for several years, you have developed certain assumptions about your practice. You look at the same (accounts receivables) AR reports for data about cash performance and with habitual eyes, see those data elements you have assumed are important predictors of cash flow. You know the world is changing, you understand the EHR will play an ever important role in your future world, you know that AR performance alone may not be enough to carry you through the coming changes; and yet the assumptions you have made about the practice go unchallenged.
An examination of current assumptions may lead you to different conclusions about the focus and direction of your practice. Here are some common assumptions that may be beneficial to re-think.
- self-pay a low percentage of practice cash flow and spending money to collect or changing policies to ensure collection will not be worth the efforts.
- marketing the practice feels uncomfortable
- we are a small practice and have the same patients we have had for years, they will continue to come here
- the healthcare act will be over-turned, no need to jump through hoops to comply
- the rising population of Medicaid will only bring me grief
- I have not yet purchased an EHR, it is too costly, am waiting for the right time
- I don't understand how heath exchanges will work, and don't know where to get accurate information
- out-sourcing billing to save money will give away too much control
- I don't have the resources to really find out why the greater than 120 day bucket in AR is growing, but am sure will resolve itself
- we have the right resources in-house to implement EHR successfully
- I have no choice but to be aligned with a large hospital
- Incorporating retail sales into my practice will cost me more than the cash it brings
- my practice management system is probably not giving me the data I need, but have put a lot of money into it and am stuck with it
- I need to change my business office director, but that will be a huge hassle
Any of these sound familiar? Or did they prompt another assumption that you may have? Challenging our assumptions, diving into the details, asking hard questions, and preparing for the future take time, energy, vision and knowledge. But the rewards they reap will mean a thriving practice that can change with the times, a profitable practice that understands how every dollar counts, and a progressive practice that grows.
Now may be the time to ask for out-side help, objective eyes that can take a hard look at your practice, assess it and make practical, proposals that will change the way you do business; enhance patient satisfaction and ensure compliance.
Cash is still king in the business of medicine; understanding the right way to drive cash will make certain you have staying power in the business of medicine.
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