Is Your Practice’s Bottom Line Shrinking? Safeguarding your revenue – Tips on best practices
To ensure your medical practice remains financially stable despite annual reimbursement reductions from CMS and major payors, it is essential to monitor for any indications of revenue loss or leakage consistently. Healthcare organizations implementing robust systems to identify issues long before they occur are more likely to take action promptly, allowing the practice to get back on track and prevent significant financial repercussions. Below are a few tips and best practices to help your organization avoid the common pitfall of a shrinking bottom line.
Conduct A Regular Financial Analysis
Conducting audits and financial analyses can be time-consuming and challenging. However, regular assessments enable sound strategic planning and help avoid costly business decisions. Financial success depends on effective planning and budgeting, especially when considering growth opportunities or eliminating underperforming services.1
Identify, Measure, Monitor and Mitigate
To enhance the financial performance of your healthcare organization, establishing strong systems to identify, measure, monitor, and address potential issues long before they become problematic is critical. Delaying a response to a financial crisis can severely limit your corrective options, lead to substantial expenses, and prolong the recovery period, which may negatively impact patient care. Here are just a few key areas we recommend monitoring to ensure your practice maintains its optimal financial health:
- Regular Payor Contract negotiations and Payor Performance assessments2
- Maintain an accurate and robust Credentialing Program3
- Assess Staffing Ratios regularly
- Assess your Revenue Cycle
- Conduct chart audits to ensure compliance and best practices for coding requirements4
- Monitor Provider Productivity
- Monitor referrals to evaluate the potential for new revenue streams
- Perform an annual vendor analysis to ensure you are receiving competitive pricing
Implementing these strategies and maintaining a forward-thinking approach keeps you agile and responsive to challenges. This will safeguard your revenue and foster a resilient, thriving financial environment.
How BlueStone Services Can Help
If you are struggling with revenue issues, our team is here to help restore your organization’s financial wellness. With our extensive skills and background, we can assist you in identifying, implementing, and establishing robust financial strategies tailored to your needs. From optimizing contract negotiations to enhancing cost-saving measures, we provide comprehensive support to ensure your financial stability and growth. Contact us today to see if we’re the right fit for your healthcare organization and take the first step towards a healthier financial future.
1 Capko, J. (2010). Secrets of the Best-Run Practices: What Makes Some Practices Stand Out from the Crowd? (2nd ed.). Greenbranch Publishing.
2Bluestone Services. (2024, June 28). Mastering the Art of Negotiating Payor Contracts in Healthcare. Retrieved from https://www.bluestonesvc.com/blog/mastering-the-art-of-negotiating-payor-contracts-in-healthcare/
3BlueStone Services. “Best Practices To Improve Your Credentialing Process.” BlueStone Services Blog, 17 Oct. 2024, www.bluestonesvc.com/blog/best-practices-to-help-your-credentialing-process/
4 AAPC. “Medical Auditing Frequently Asked Questions.” AAPC, https://www.aapc.com/resources/medical-auditing-frequently-asked-questions. Accessed December 3, 2024.
