One of the biggest concerns for any medical practice is controlling overhead costs. This can be a difficult task, but with a few simple strategies, you can keep your expenses in check and improve your bottom line.
These 5 strategies are some of the best ways to control overhead in your medical practice. By following these tips, you can save money and improve your profitability.
1. Look out for costs from companies that provide supplies, equipment, and services
You should always be on the lookout for ways to reduce costs from vendors.
You may wish to consider leaving your current service provider or renegotiating your contract if costs are getting to be too much.
It might also be possible to get group discounts by partnering with other medical practices. This is a great way to reduce costs while still getting the supplies and services you need–-and everyone wins.
2. Review each line item on profits and loss statements
It’s important to regularly review your profits and losses so that you can identify areas where you may be able to save money.
This will help you keep a close eye on your overhead costs and make sure that they’re in line with your revenue.
When reviewing your P&L, pay close attention to each line item, analyzing where your money is going and discovering opportunities to spend less. For example, if you’re spending a lot on advertising that isn’t bringing in results, see if you can find more cost-effective ways to market your practice.
It’s also important to keep an eye on your variable costs. These are the costs that fluctuate based on your revenue. For example, if you have a lot of patients, you’ll likely have higher costs for supplies.
By reviewing your P&L regularly, you can identify areas where you may be able to save money. This will help you keep your overhead costs down and improve your bottom line.
3. Strategize about ways to increase revenue
One of the best ways to offset high overhead costs is to increase your revenue. There are a number of ways you can do this, and the best approach will depend on your unique situation.
For example, one option may be to offer new services, like lab services or imaging. Another may be to offer in-office tests for COVID, asthma, hearing, drug screening, and more.
4. Create a policy for collecting payments at time of service
One of the best ways to reduce overhead costs is to ensure that you’re collecting payments at the time of service. This can be a challenge, but it’s important to have a system in place so that you’re not left with unpaid invoices.
There are a number of different ways you can collect payments at the time of service. You can use a point-of-sale system, have patients pay by credit card, or set up a payment plan.
Medical practices can save a lot of money by not having to bill and re-bill patients all the time. For example, consider requiring all patients who have high-deductible insurance plans to keep a card on file so that payments can be charged.
5. Hire a Fractional Chief Marketing Officer (CMO)
Hiring a fractional CMO is one of the greatest and most efficient ways to control your overhead costs.
We can provide you with highly experienced strategy development and execution, all the while offering low executive costs.
Fractional CMOs, like us at Bizzuka, work “fractionally,” saving you the cost of hiring full-time marketing personnel, but giving you the same advantages:
- A comprehensive marketing strategy,
- Vendor relationship oversight,
- Executive level oversight,
- Increase in patient revenue,
- Mentoring and marketing team management,
- Leadership and experience,
- Team consistency and accountability,
- And more.
If you’re truly interested in growing your business and learning to control overhead costs, schedule a free 45-minute diagnostic session with the fractional CMOs at Bizzuka. We’ll help you gain clarity on the growth opportunities that are lying dormant in your business and see where you may be falling short.