The average clinic has 1 physician, 2 midlevel practitioners, and 4 to 7 office staff. With payroll, utilities, and malpractice insurance all considered, the average clinic overhead costs come to around $800,000 a year. If your clinic is at or over this daunting number, don't fret! Here are a few easy ways to save your practice money. If you apply at least one of these solutions into your clinic, you could see your bottom line increase by 10% or more!
1. Meet More Sales Reps
Yes, we all know sales reps can be much. Your staff sees a dozen reps on a daily basis, all fighting for time to meet you so you can hear about why you should prescribe a new drug or utilize a cutting-edge ancillary service. Though these salespeople may come off as pushy paparazzi, sitting down to a provided lunch one-on-one may prove to be beneficial! It's an opportunity to not only gather more information about the industry, but to ask how you would benefit more by using them.
What's in it for me? - The question you shouldn't be afraid to bring up in these meetings. Vendors want to know who is taking care of you but more importantly, they really want to know what it will take to replace them. If it's an EMR provider, tell the rep how much you pay for the service. Fish out a lower price and take that to your current vendor to engage them in a price war where they're fighting over YOU! If you're paying a staff member to perform blood draws, entertain a laboratory that would save you overhead by hiring them, or place an in-house phlebotomist of their own.
2. Look Into Cash Pay Models
We all know insurance can be a real pain, especially when an office visit could take up to 120 days to be reimbursed on. Think about reducing overhead costs associated with billing and coding by offering a discounted cash price for your services and collecting it all upfront. Small administrative fees, such as a $20 blood draw charge, over time could make a huge difference in your clinic financially.
Labetics, is a prime example of how providers can order patient testing through a self-pay system, excluding insurance completely, and receive a portion of that payment themselves.
3. Offer Related Products Within Your Clinic
Imagine this: A patient has just completed an office visit where you've recommended a higher intake of Vitamin B-12 and magnesium. Your patient now has to make a separate trip to the store and be bombarded by varying brands and prices of essentially the same vitamin. Your patient took time away from their work or personal life to see you, so why keep them away for longer? Consider being a one-stop health shop by offering related products - save your patient time and increase clinic revenue.
It doesn't stop at supplements. If you're a dermatologist and find yourself recommending specific ointments frequently, look into bringing that product in-house. You could even tie back to our first point of meeting more representatives, lower your buying price, and increase your profit margin.
4. Participate In Paid Surveys & Focus Groups
Remember, YOU are the expert in your field. Your education, experience, and every day activities are valuable input for which third party agencies are eager to compensate you for. Whether it's a company beta testing a new software or gauging interest in an innovative healthcare idea, you can make money providing something many would dream of getting paid for - YOUR OPINION!
Probably the easiest way of generating revenue for your practice is to buy in to companies, whether they're in your industry or not, as a way of supplementing your clinic's income. Sure, a sizable upfront financial commitment isn't chump change but when you're being paid once a year, once a quarter, or even monthly - it just makes sense.
Of course, do your due diligence in researching companies with such opportunities. Evaluate a start-up on what they've done and what their growth potential looks like, and consult with a lawyer before considering making this jump.
The Bottom Line
Sure, some of these points may seem a little easier said than done and you're busy as a practitioner, but if you can choose just one of these ways and put forth an extra inch of effort, could prove to equal a mile in the long run when it comes to generating additional revenue or eliminating unnecessary costs for your clinic.