Because your patients come first. Small shifts that make a big difference in finance 12 month plan...
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Transcript of Because your patients come first. Small shifts that make a big difference in finance 12 month plan...
Because your patients come first.Because your patients come first.Because your patients come first.
Small shifts that make a big difference in financeSmall shifts that make a big difference in finance12 month plan to lower your overhead12 month plan to lower your overhead
Steven A. Adams, Steven A. Adams, CPC, CPC-H, CPC-I, CPC-P, CCS, CCS-P, PCS, FCS, COACPC, CPC-H, CPC-I, CPC-P, CCS, CCS-P, PCS, FCS, COA
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
So What’s So What’s Wrong?Wrong?
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Inman EquationInman EquationInman EquationInman Equation
4 - 5 = -1
It’s not 1’s fault
R - OH = P
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
What Can You What Can You Do?Do?
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Object of the GameObject of the GameAverage practice with a
60% OverheadHas a
5% Increase in RevenueOr a
5% Reduction in Overhead
Results in a
10% Gain in Profit
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 / 10 Rule5 / 10 Rule5 / 10 Rule5 / 10 Rule
2008 2009Revenue 500,000.00$ ## 512,500.00$
OH 300,000.00$ ## 292,125.00$
Profit 200,000.00$ 220,375.00$
A Small Change Makes a Huge A Small Change Makes a Huge DifferenceDifference
A Small Change Makes a Huge A Small Change Makes a Huge DifferenceDifference
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Before We BeginBefore We BeginBefore We BeginBefore We Begin
On the financial statement, there are more than 30 lines showing us how we spend our
money. But there’s only one line that focuses on how much we make. Increasing revenue
while decreasing overhead is the key to financial success.
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
• A/R < 18% > 90 days• Patient Debt < 20% of
A/R• PQRI• E-Rx• EMR bonus• Stimulus Package ’09• Coding Correctly• CCI Edits
• Fee Schedules / Contracts
• Preventive Services G0101 Q0091 G0372 99406 99407 G0102 G0179 G0180
Top Line StuffTop Line StuffTop Line StuffTop Line Stuff
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Now Your 12 Now Your 12 Month Plan to Month Plan to
Reduce OHReduce OH
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 1Month 1Month 1Month 1
Staffing NeedsStaffing Needs
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Largest expense 23-30%
II. List what you believe to be the problems in the office
III. Can you outsource to save money?
IV. Have staff list top 5 things they do - look for overlaps
V. Look for high paid people doing low pay work
mgma.com
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 2Month 2Month 2Month 2
Employee SalariesEmployee Salaries
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Don’t just count FTE’s consider a budget for staffing
II. Create a grid with positions and create maximum salary
III. Consider raises based on incentives plans for each position
IV. Make your money their money
V. Show employees their entire benefit package annually
salary.com
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 3Month 3Month 3Month 3
Health InsuranceHealth Insurance
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Does everyone at your office need their coverage?
II. Drop the dental and vision and/or charge a percentage of the premium to your employees
III. Consider a high deductible HSA / HRA catastrophic plan
IV. Partially or fully fund the deductible with an “HRA”
V. Watch the person making this decision
ehealthinsurance.com
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 4Month 4Month 4Month 4
Retirement PlanRetirement Plan
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Pay yourself before anyone else – look out for you
II. IRA income limits abolished in 2010 for converting to a Roth IRA but stay for contributing
III. Take your 401K/201K and diversify and reallocate
IV. Invest in an IRA through MAG with a 7% guaranteed growth rate
V. The average doc will need $3,000,000 in retirement to live on 12,000 per month
cbpp.org
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 5Month 5Month 5Month 5
Sick Leave and Sick Leave and OvertimeOvertime
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Average sick is 5 days, average vacation is 10 days
II. Update policy manual to reflect separation pay and unused time
III. Just switch to CAL time 17 work hours for 1 CAL hour
IV. Make your time their time
V. Why are your employees working over time
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 6Month 6Month 6Month 6
Lease AgreementsLease Agreements
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Operating stop provisions
II. Net rentable space and net usable space
III. Is the insurance necessary
IV. Would it be cheaper in the long run to own a building than to rent office space
V. Look at the leases and interest on your equipment – you’re killing me
officefinder.com
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 7Month 7Month 7Month 7
Medical, Lab and Medical, Lab and Office SuppliesOffice Supplies
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Make a budget and stick to it – Tie it into a staff bonus – Make your money their money
II. Consider ILS through MAGIII. Have one person
responsible for suppliesIV. If pass through billing for
labs check the billsV. Requisitions forms work
and should be reconciled by you
magmutual.com
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 8Month 8Month 8Month 8
Outside ServicesOutside Services
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to ConsiderI. Usually overlookedII. Outside services CAN save
you money and help ensure compliance:
I. (coding and documentation, payroll, bookkeeping, billing, collections, budgeting, yard, janitorial, hardware, software, HR management)
III. Inquire about free services available from vendors, IPA, Malpractice
IV. You’re paying for advice, so listen
V. Always ask for a [email protected]
m
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 9Month 9Month 9Month 9
Postage and Postage and Telephone CallsTelephone Calls
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Stop sending indefinite statements
II. Use a system like MD Messages to confirm patient appointments and for lab results
III. Look at having statements done off-site by your billing vendor
IV. Look at stamps.com instead of a meter
V. Put in a 900 line for rx refills mdmessages.co
m
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 10Month 10Month 10Month 10
AdvertisingAdvertising
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. How did your patient find you in the first place?
II. Satisfaction survey helps show you what works
III. Did the color add in the yellow pages work?
IV. Are you on the web?
V. Its always cheaper to keep an existing patient than to find a new one. Marketing never stops
masseyeandear.org
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 11Month 11Month 11Month 11
Patient RefundsPatient Refunds
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Refunds are not a good thing
II. Patient refunds should be researched to find out what went wrong?
III. Refunds to governmental and private payers must be made immediately
IV. Make sure you find out why a plan requested money back
V. Take corrective action – keep that cash magmutual.com
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Month 12Month 12Month 12Month 12Petty Cash, Bank Petty Cash, Bank
Charges and Other Charges and Other Things That Cost Things That Cost
You MoneyYou Money
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
5 Things to Consider5 Things to Consider5 Things to Consider5 Things to Consider
I. Make sure all petty cash is accounted for with receipts
II. Make sure you only have one receipt book at the front desk
III. Call the bank and ask if there is another option for your primary account based on your activity
IV. If you use a credit card do you have one with points that can be used for future purchases
V. Call your mobile carrier and find a way to reduce costs
magmutual.com
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Remember…Remember…
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Object of the GameObject of the GameAverage practice with a
60% OverheadHas a
5% Increase in RevenueOr a
5% Reduction in Overhead
Results in a
10% Gain in Profit
Because your patients come first.Because your patients come first.Because your patients come first.Because Your Patients Come FirstBecause Your Patients Come First
Any Questions
Office: 888.624.6474
Direct: 770.241.4344
E-Fax: 404-848-8661
E-mail: [email protected]
Facebook: facebook.com/people/Steven-Adams/1154124331