In many ways, Covid19 brought a lot of opportunities but also brought massive change to an industry that had not experienced much change in a generation. This made the last 2 years quite difficult.
Many practices have realised that bulk bulking is no longer a business model that works. New MBS items, vaccination that take up resources were just a few of the challenges.
And now there is a risk of payroll taxes which has the potential to put practices out of business.
I do not understand the states going for medical practices. I think they think there is a pot of gold for them to dip into but that is rarely the case. It does not make good PR and if practices start closing I am not sure how that helps the state.
But the above have left of a lot of medical practice owners quite miserable. It is too much to take on. And many are thinking of getting out.
Now I always say if you are thinking of selling a practice you cannot really decide and put it on the market. To get the best price you really want to plan your sale over a few years.
But it does not matter if you want to get out or just increase the value of your practice. These 3 things will make a massive difference
1. What are the Numbers telling you?
Practices think that just knowing a few numbers is enough. It may be but we find that training your Practice Manager and Doctors on what to look for makes the biggest difference.
Most practice managers do not regularly check what the current utilisation of MBS items are and how can this be increased
But your PM needs to look at all the major MBS codes. What item numbers are being under-billed?
2. It’s about Expenses too
From experience most medical practice look at fee income but the other part are expenses
If you want to focus on what to look for try this
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- If the expenditure will increase income by more than the expense make it. Eg take on a new nurse if you think the clinic fee income will be more
- If you have to make the expense to keep the business going make it – Eg rent
- Everything else you can look at to see if that expense needs to be made.
3. Utilise your Database
There is massive potential in your database. Don’t ignore it. Identify patients who are eligible for care plans and HMRs.
Patients may come to see your doctors with one issue but that allows you to ask more questions and provide additional services.
At MediSucess, we can assist you
• If you are a practice and need help with your taxes and year-end financials
• If you are a contractor and need help with your taxes and year-end financials
• Want a second opinion on your taxes
• Assist in providing you with more income, more freedom and more wealth
• Show you our 9 steps to achieve financial freedom
• Give you a second opinion on how well your practice is performing
Contact us today to find out more!
We look forward to partnering with you.