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Challenges Of Running A Practice

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The importance of cash-flow for doctors in private practice

Image 1Many people look at being a doctor as an instantly lucrative career, without realizing the amount of risk and overhead that comes with the territory. Many doctors have trouble even practicing due to the high costs of medical malpractice insurance. Other doctors are having trouble maintaining their practice because of the difficulty commonly associated with getting paid on time. If you want to get all that you can out of your physician business, read on and take advantage of these tips below to learn all about the importance of cash flow.

#1: Having Cash On Hand Allows You To Build Your Coffers

When it comes to running a medical practice, you need to be sure that you do all that you can to have reserves. All businesses require reserves, but you are truly doing yourself a disservice if you do not have a substantial nest egg to protect you from certain emergencies that can take place throughout the course of your business.

Factoring could be a good way for doctors to help improve cash flow.

#2: An Increase In Cash Flow Makes Your Business Less Of A Liability Overall

When your business is liquid, you will not have to worry about liability a much. For instance, if you happen to run into a HIPPA violation, you will be able to address the fine and violation accordingly if you have the proper funding. Physicians and insurance companies are routinely at odds over claims and payouts for many reasons, so you need to be able to counteract these issues by always having an abundance of cash flow on hand.  Check out Bank of America’s Cash Flow Is Key To Success For Medical Practices

#3: You Will Be Able To Remain Current With All Of Your Expenses

Sometimes it ‘s hard to remain current with your expenses if your practice is not liquid. Late fees will begin to add up to the point that it’s hard to tend to your overhead costs. Because of this, an increase in your liquidity can be incredibly helpful in that regard.

What are some opportunities that I can take advantage of to improve my cash flow?

One step you can take to increase your overall cash flow is to start taking in money for medical transportation. Many doctors do not collect money for ambulance travel, but you are leaving money on the table if you forego this. Another great way to take advantage of an increase in liquidity is to offer medication at your office. By filling your patient’s prescriptions, you will be able to bring in more money on a regular basis. You can also take advantage of online medicine on either a part-time or full-time. For instance, you can capitalize on some weekend shifts to diagnose and refer patients by way of e-medicine. This form of technology has allowed many doctors to increase their reach and their capability on a regular basis.

Financial Challenges For Doctors In Private Practice In America


Today physician offices have to be much more than places where patients go when they’re not feeling well. In order to survive physician owners must realize they’re operating a business as much as they are running a busy medical practice.


This can be challenging for most solo practitioners, because they don’t teach this in medical school. Physician must understand that they must run their practice like a business in order to survive. Every dollar counts and finding ways to retain revenue is just as important as making money.

There are a lot of challenges physicians face today and it’s not easy to reengineer the way they’ve practiced medicine for the past 20 years, but it’s mandatory that they evolve in order to survive.

The AMA Comments on Health Care Reform and Dr James Roach, president of the AMA, explains why his organization is backing healthcare reform.

#1: Changes In Communication May Leave You Open To HIPPA Violations If You Are Not Careful

As you move toward greater efficiency and technology, you will need to be sure that your security is up to par. When providing information online, through your website, mobile app or other communication measures, you will need to keep tabs on your security measures to be sure that there are no breaches. Leaving your patients’ sensitive data at risk also leaves you open to HIPPA violations, which refer to a patient’s right to privacy. You will need to conduct internal audits to avoid costly penalties and to keep your patients’ information purely confidential.  HIPAA Violations and Enforcement

#2: It Can Be Difficult To Actually Get Paid

There are a lot of hospital or insurance related instances that may make it difficult for you to get the money that you deserve. For example, the insurance company might refuse to pay if the patient’s coverage has run out for any reason. There may also be some missing modifiers or other variables that can leave your patient’s plan out of sorts and mired in red tape and paperwork over the long term.

#3: There Are A Plethora Of Insurance Issues That Doctors Deal With

The market has reached the point that many doctors have foregone insurance due to the many issues that they have had with it. Independent doctors have difficulty receiving income due to these insurance snags, and this can create a series of headaches throughout your practice.

Why is it so important for my practice to be liquid?

You owe it to yourself to have more cash flow in your business if you want it to be successful. By taking advantage of accounts receivable financing options, you will be able to increase the amount of money that you have on hand to make your business more efficient. This helps you settle your books and get out of debt to keep your business thriving and at its best.

There are some subtle things you can do to keep bring in more income. For instance, you can offer ambulance billing or offer physician dispensing to your patients. Having your own dispensary allows you to sell products and capturing revenue that typically goes to outside pharmacies.

With this information in mind, you can see why the fight continues in the ever evolving turf war in the medical industry.