Every year winds down faster than the last and it’s the perfect moment for healthcare practices to start looking ahead for a financial checkup. Have you ever considered what it takes to get game-changing results for your practice? Let’s dive into some of the key strategies for creating a plan to improve performance of your practice and help you avoid any financial problems.
Financial management of your medical practice is crucial for its stability and long-term growth.
1. Three Vital Evaluations for Year-End Success
Before you jump into the New Year, it’s important to take a close look at how your healthcare practice is doing. You want to make sure everything is running smoothly and you’re doing the best for your patients and staff. So, let’s break it down:
- Checking Finances: First, let’s talk about finances. You need to see how much money you’re spending, and if you’re making enough profit. This helps you to know if your practice is financially healthy or if there are areas you need to work on. You can also get advice from specialised healthcare accountants who have significant experience in managing your practice finances.
- Ensuring Patient Satisfaction: The last thing you want for your practice is to have an angry patient. But if they’re happy with the care they receive, you are golden. You can gather data through surveys or by studying the reviews they leave. This will help you identify areas of strength and areas for improvement.
- Assessing Staff Engagement: You must also see how your staff is doing. Are they enjoying their work? Do they feel supported and valued? Your staff is a big part of why your practice is going to be successful or a failure. Therefore, it’s very important to ensure they’re doing great and being supported by you.
2. Identifying and Addressing Common Practice Issues
Reconcile Your Accounts
Compare the amounts recorded in your accounting system with your bank statement. If there are any discrepancies, make a list of them. This step is crucial to ensure that all the income and expenses are accurately recorded.
Analyze Income Streams
Break down all your income streams. Avoid adding values like “ICB/NHS.” Instead, categorize them into specific types of income. There have been issues seen with ICB not sending clear remittance details.
Match Reports with Bank Deposits
Compare (PCSE) Primary Care Support England reports with what’s been deposited in your bank. If there are differences, ensure you have remittance details to explain any additional income or deductions and record these in your system.
Manage Debtors (Who Owe You Money)
Compile a list of services and individuals who owe you money, such as for enhanced services or insurance reports, at the year-end. For ICB income, note which quarters have been paid since some payments are made a quarter in arrears.
Aged Debtors Report
If possible, run an aged debtors report. Determine if all entries will be paid. Make a list of the money you need to collect to keep your finances simple and avoid chasing debts you can’t get back.
Manage Creditors (Who You Owe Money To)
Like with debtors, list all businesses and individuals you owe money to at year-end. The largest items typically include drugs and medical expenses, often with payments due two or three months later.
Aged Creditors Report
Run an aged creditors report to ensure accuracy. Remove old amounts or minor differences to keep your records clean.
Take Stock
Inventory Check: Close to year-end, take stock of all items, including drugs and stationery. This is important, especially for expensive items like printers and toner cartridges.
Professional Expenses Paid Personally (PEPPS)
Prepare PEPPS Records: Even though these expenses are not part of the practice’s official records, they should be prepared alongside the accounts to avoid duplication. Each partner should provide their information in the requested format.
3. Setting Strategic Goals:
After analyzing how your healthcare practice is doing, it’s time to set some goals for the future.
Introduction to SMART Goals Framework: Ever heard of SMART goals? This framework is a way to make sure your goals are going to help you succeed. SMART stands for:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
It means your goals need to be clear, doable, easy to track, important to your practice, and have a deadline. This helps you pay attention to what matters and gives you a clear path to follow.
4. Implementing Actionable Strategies:
After setting your goals in place, it’s time to develop strategies and put plans into action. There are some areas where you can make improvements, so let’s break them down into five simple steps:
Update client records: Firstly, you need to analyze your client records. Check that all the information is correct, including details, medical history and contacts. You can make this process easier and more efficient by using tools like FAS ERP. This allows you to save valuable time.
Manage Finances: The next step is to get your finances in order. To effectively manage your budget, it’s essential to track all incoming and outgoing expenses. This involves reviewing expenses, reconciling invoices, and finding opportunities to save money. If you struggle with these tasks, consider seeking assistance from medical accountants who specialize in financial management.
Marketing: Develop a strategic plan to increase awareness of your healthcare services and attract new patients. Explore avenues such as online advertising, social media engagement, targeted outreach to specific audiences, and active involvement in community initiatives.
Strengthening Partnerships: Maintain a strong and friendly relationship with other healthcare providers. Connect with referral partners, thank them for their support and look for ways to collaborate and help them each other when in need.
Utilize Technology: Use technology to increase productivity. Take leverage of appointment scheduling software or telemedicine platforms to provide better care for your clients and simplify your operations.
5. Continuous Improvement and Adaptation:
You need to keep checking things after specific intervals and be ready to make changes if needed. Here’s how you can do that:
Professional Development:
Continue to enhance the ongoing learning of your staff through workshops, and online courses. Explore emerging healthcare trends, and technological advancements to stay competitive in the ever-changing medical landscape.
Risk Management Strategies:
Carefully identify potential risks and liabilities such as cyber security threats, supply chain disruptions and compliance issues. Develop risk management strategies and backup plans to minimize the consequences of unforeseen circumstances.
Community Engagement and Outreach:
Increase your engagement with the local community through outreach programs, educational seminars and health fairs. Build strong relationships with community groups, and schools to promote health awareness and preventive care initiatives.
Environmental Sustainability:
Consider eco-friendly practices in your workplace, like reducing paper usage, saving energy, and recycling materials. Utilize healthcare programs that support environmental sustainability and contribute to the well-being of future generations.
Conclusion
In summary, by following the above steps you can set your practice up for success in the coming year. Don’t wait until the last minute—start evaluating, setting goals, and keep making improvements. If you have any questions or need assistance, feel free to contact us.