The business of medicine is one that holds surprises around every corner. From insurance delays to clients who refuse to pay to the ever-shifting prices of medical supplies and equipment, being able to track profitability to ensure success can be an extremely challenging endeavor – one that has kept business professionals on their toes for years.
The issues are the aforementioned variables, plus others. The nature of a medical practice can make collecting payments extremely difficult, as self-pay patients may not be able to pay and insurance companies are notorious for refusing to pay full charges. Despite the difficulty of dealing with these issues, however, they are unavoidable.
Then, with new laws that change all the time – like the Health Insurance Portability and Accountability Act – and the newly instated and constantly evolving Affordable Care Act, you must always have the latest information and be prepared to work it into your medical practice.
Medical equipment prices are also extremely difficult to predict. Sanitation and disease prevention are areas that are continuously being studied and, with new diseases and bacterial resistances coming to light regularly, medical supply companies must be able to adapt quickly, which can lead to frequent price changes.
Employment in medical practices can cause problems as well. Medical jobs can be difficult and, depending on the situation, the burnout rate is high, which requires more frequent hiring as employees rotate in and out. In addition, medical employees are often required to have various certifications, meaning that hiring someone is a bigger investment than in other industries due to the need for training. Or, if a medical practice chooses to require a certification prior to employment, they will have fewer candidates to choose from.
These issues sometimes seem insurmountable, but Oates & Company has a solution to help you track revenue and calculate profitability accurately and reliably. If you have a medical practice that could use our expertise, contact us today.
