Managing expenses and cost-cutting, are two vital arts for any business. With the ICD-10 on its way, things could be difficult. Just setting aside reserves are getting credit, wouldn’t be enough. There will be additional expenses after the arrival of ICD-10, not to mention losses in revenue for up to 3 months. It is time for you to assess your business and come up with ways to cope up with that.
Following are some ways which can help you achieve just that.
1. Reduce Utilities:
Electricity, internet, phones, etc. are essential to any business. However, these also end up being the most expensive. The utility companies have different tariffs and offers. Watch for those and try reducing these expenses.
2. Contracts and Leases:
Annually reviewing all vendor contracts and leases is a great practice. It will help you get competitive quotes from at least 2 or 3 vendors. Apart from this, you could also try and reduce office overheads. Reducing use of printers and copiers is a great example.
3. Automating or Outsourcing:
If you’re managing your practice, billing, and performing clinical tasks, automating these would be of great help. Outsourcing is also an option. Using a medical billing service works out to be less expensive than having your own billing staff. Not to mention, it can it will improve your overall collections.
You might have noticed that staffing costs have not been included above. This is the largest expense. However, with regard to ICD-10, staffing has some special considerations. This is certainly not the time to hand out bonuses or raises. Wait until after January 2016 to look at that. On the other hand, staff cutbacks are also not feasible. You will need the resources to manage and smoothen the transition. Even if you implement new technology, wait until 2016 for things to settle down, before making staff changes.