As a healthcare provider, you want to give your patients top-notch care with state-of-the-art equipment, comfortable surroundings, and a well-managed office. However, to achieve that level of service, you may need to grow your healthcare practice. And to grow your practice, you’ll need to embrace a business mindset.

That’s not easy for many practitioners, who would rather spend their time treating patients than billing them. Fortunately, you don’t have to become an expert in medical finance to build a thriving practice. There are strategies that can help.

Growing your healthcare practice = Growing your business

There has been a trend toward larger practices over the past two decades. Independent Physicians Associations (IPAs) are acquiring other IPAs, specialists are banding together, and many doctors are joining hospital-owned practices. Having a bigger health care practice brings many advantages:

• Greater market access
• Savings on overhead costs
• Peer knowledge and support
• More leverage with third-party payers
• Stronger negotiating position with vendors
• Pooled capital
• Shared risk

 

The benefits are clear, but there is often a big obstacle to expanding your healthcare practice: capital. Whether it’s hiring an additional physician assistant, purchasing new diagnostic equipment, or updating your IT system … growth costs money. And regardless of whether you’re a primary care physician, home healthcare company, dentist, or radiologist … one thing all providers have in common is that they get paid SLOWLY. Healthcare finance is challenging, especially managing accounts receivable. There is often a very long delay between when services are rendered and when payment comes if it comes at all.

8 strategies to secure your cash flow and grow your healthcare practice

1. Implement a point-of-service payment policy

Collecting from the patient at the time of service is more critical now than ever, with patients responsible for a greater share of their care. It’s not enough just to charge a copay. Be sure to thoroughly check the terms of patients’ plans before they arrive for appointments. The more accurately you can estimate total patient responsibility for a procedure, the more likely you are to get paid. According to the Medical Group Management Association (MGMA), a healthcare provider’s chance of collecting payment from patients is 70% at the time of service – but only 30% after a patient leaves the building. Only 21% of patient balances not collected up front are ever collected.

Transparency is key to successful POS collection. Communicate your medical group’s payment policy clearly on your Web site, on signs in the waiting area, and during appointment scheduling to avoid surprises. Train your staff on how to ask for payment at check-in. Give patients a wide variety of payment options – cash, checks, credit cards, and debit cards. Implement a credit-card-on-file program. For patients with outstanding balances, refuse to schedule new appointments until payment is made or a payment plan is set up.

2. Keep your IT current

It can be expensive to keep your practice’s information technology systems up to date, but doing so has never been more important or more worthwhile. From maintaining electronic health records (EHR) to sending e-prescriptions and automating the ordering of supplies, modern IT systems improve your efficiency and can have a direct impact on your bottom line. Preventable errors on medical insurance claims are the most common reason for denial of payment – accounting for up to 90% of denials. Modern systems greatly reduce the chance of coding or authorization oversights. Patient portals can help with pre-certification and insurance verification. Appointment confirmation and reminder systems can greatly cut down on costly missed visits.

3. Explore medical accounts receivable factoring

Medical accounts receivable factoring can take the mystery out of when your practice will be reimbursed by HMOs, private insurance, Medicare or Medicaid. It can also cut down on the cost of collection services. Medical factoring specialists like Xynergy Healthcare Capital purchase your unpaid invoices at a modest discount and give your practice cash within 24-48 hours of claim submission. This process gives healthcare providers a reliable flow of working capital without incurring any debt. Factoring is also flexible – providers can choose which claims to submit for funding and how often to fund.

Factoring has been hugely beneficial to many types of providers including physician group practices, nursing homes, home healthcare companies, rehab clinics, medical equipment providers, MRI and imaging centers, clinical laboratories, dialysis centers and others.

However, unlike factoring in other industries, medical factoring is a specialized field that requires an in-depth understanding of the healthcare industry. To get the most value for your medical receivables, be sure to work with a company like Xynergy that has extensive experience with third-party healthcare payers.

4. Expand your services

There is strength in numbers when it comes to attracting patients as well as negotiating with vendors. Strategic affiliations with providers that offer complementary services can help your practice to prosper. For instance, practices that specialize in patients with diabetes should integrate kidney and eye disorder treatment, nutrition, and weight loss. Centers that specialize in low back pain can offer a range of services from physical therapy to radiology, orthopedics, pain management, neurology, and rheumatology. Coordinated care reduces duplication, improves outcomes, and adds value while cutting costs. Practices can also add value by offering telemedicine and employing nurse practitioners and physician assistants.

5. Marketing matters.

Today’s patients are savvy consumers who often start their search for medical care online. Skimping on marketing is a big mistake. Your healthcare practice needs a welcoming and informative website, email program, and social media presence. All of your print and digital communication should have a consistent look and voice that inspires confidence and trust. Using the same logo, colors, and font family across all of your messaging will create a brand identity that patients will remember.

6. Pay attention to online reviews, particularly complaints.

Your practice’s online reviews are one of the most important factors that determine whether a potential patient will entrust you with their care. The best way to earn positive reviews is to ensure you are giving patients a positive experience. If multiple reviews complain about the same thing, pay heed and address the problem. Sites that publish reviews include Healthgrades, ZocDoc, RateMDs.com, Vitals.com, Angie’s List, and even Yelp.

7. Form community partnerships.

Partner with local charities or organizations to help get your name out. If you are a physical therapist, for instance, consider sponsoring a local sports league. If you are a home health provider, consider sponsoring an Alzheimer’s fundraising walk. If you’re a pediatrician, get behind a summer reading program for kids. The investment is usually modest, and the goodwill and networking value can be significant.

8. Don’t neglect your office space.

Have you diagnosed your decor lately? Your waiting room sets the tone for your practice. If your carpet, walls, seating, and artwork have seen better days, it’s a good idea to freshen them up. A small investment in appearance can go a long way toward inspiring confidence and improving the patient experience.

The benefits of medical factoring

Of all of the things you can do to grow your healthcare practice, medical accounts receivable factoring might be the most important. It takes a steady cash flow to continuously improve patient service and invest in marketing and equipment. In today’s shifting healthcare landscape, companies like Xynergy Healthcare Capital are game-changers, freeing practitioners from endless accounting and billing challenges so they can focus on providing top-notch care.

Get more information

Xynergy is a leading medical finance company that specializes in accounts receivable factoring. We can give your practice a customized financial assessment and collections audit to see if you’re losing revenue unnecessarily and determine if you qualify for medical accounts receivable financing. For more information, call (855) 358-8258 or send an email to info@xynergyhealth.com.