LUTZ BUSINESS INSIGHTS
Diagnosing Your Practice’s Pain
SCOTT MILLER, CLIENT ACCOUNTING SERVICES DIRECTOR
Medical providers in private practices often times forget that they are not only practicing medicine, they are also running a small business. Similar to what they preach to their patients, they need to subject their business to periodic checkups to ensure that it is running correctly. It is critical for physician owners to make sure they are identifying issues in their practice because when left untreated, these issues can become full blown problems that will cost the physician practice more time, money and resources as more time passes.
Through our experience consulting in the healthcare industry, there are five recurring problems we see most often:
1. Inability to get accurate, timely financial statements
Practices will often rely on someone who may not have an accounting or financial background to perform the accounting for their practice. The end result is often times scary, with physicians either receiving inaccurate or delayed reports for which they rely upon to make business decisions.
2. No Benchmarking being used
A good practice must set benchmarks to use for self-measurement, both on historical practice data and also industry wide data. In addition, the practice should have a way to accurately track the information being used for the benchmarking and periodically evaluate it.
3. Statistical Analysis not being done or not analyzed
It is easy to track how much money is being deposited into the bank, but that often times that doesn’t tell the real story of how the practice is performing. A physician practice too many times ignores what is happening in their practice management software and doesn’t get a real idea of what is happening. Statistics such as Accounts Receivable Aging, new patient visits, and production by provider among others need to be constantly reviewed.
4. Physician and mid-level compensation not being properly designed
Practices need to review their compensation agreements with their providers and ensure they are properly documented and followed in the practice. In addition, providers at every level need to be monitored for compensation levels and compared to regional and national averages.
5. A practice’s billing not being done properly
Too many practices do not earn what they should because they either bill the wrong codes, don’t bill for all the procedures performed or don’t follow up on denied claims. Practices must constantly review their billing processes and procedures to ensure they are in compliance, billing correctly, and follow-up on collections.
The above pains are something we encounter every day and can aid in formulating solutions. Our experience coupled with the ability to highlight best practices enable us to tailor a practical solution for each practice. Contact us if you would like to discuss your practice pains and potential solutions.
ABOUT THE AUTHOR
SCOTT MILLER + CLIENT ACCOUNTING SERVICES DIRECTOR
Scott Miller is a Client Accounting Services Director at Lutz with over 16 years of related experience. He specializes in business consulting for closely held companies and outsourced accounting replacement services.
AREAS OF FOCUS
- Outsourced Accounting Replacement Services
- Business Consulting
- Operational Analysis
- Provider Compensation
- Financial Benchmarking
- Strategic Planning
- Professional Services Industry
- Private Practice Healthcare Industry
- Dental Practices
- Construction Industry
- Restaurant Industry
AFFILIATIONS AND CREDENTIALS
- American Institute of Certified Public Accountants, Member
- Nebraska Society of Certified Public Accountants, Member
- Certified Public Accountant
- BSBA in Accounting, University of Nebraska, Kearney, NE
- Creighton Prep Alumni Board of Trustees, Past Member
- Ridgefield Homeowners Association, Treasurer
- Omaha Suburban Baseball Association, Board Member
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