Posts

Where is Your Net Profit?

You’ve worked hard all week; the office atmosphere is rife with discipline and brisk efficiency. The staff have been getting along with one another and you are proud of the team spirit they’ve both individually and collectively demonstrated. In fact, your staff has almost read your mind and anticipated your every need. All of the patients have arrived on time for their appointments, and the majority of them have even heeded your advice and accepted your treatment plans!

Now it’s Friday afternoon; the staff has received their paychecks, which reflect production bonuses that you’ve doled out in appreciation of their contribution to the overall increase in production. But then you look at your bank balance and you’re surprised and sorely disappointed at the lack of funds left over for you. What happened?

Where is your net profit? Did you work hard all week just to earn less money? The bank balance should be going up, not down!

You wonder if it’s worth all the effort. All of that increased production might just have landed you into a “higher office-overhead/higher tax-bracket” situation. It’s that frustrating income vortex — the place where, despite producing and collecting more, you take home the same amount or less. And following a few of these “successful” weeks, you shake your head and realize that if you endure much more of that kind of success, you’ll go broke! So, what should you do?

Let’s start by taking a look at the myriad of possibilities of what might have occurred that resulted in your not having any profit for yourself:

Management Issues:

  • Could you consolidate loans for equipment and/or your practice into just one loan, in order to reduce your monthly loan payment and possibly the interest amount?
  • Can you reduce the amount of inventory the practice maintains?
  • Are you collecting your Accounts Receivables with minimal aging? Do you collect at least 97% of the amounts billed?
  • Do you have any sort of monitoring system that helps you to know at a glance, statistically, who is productive and who isn’t?
  • Do you have written office policies that are known and enforced?
  • Does each position in the office have a fully delineated job description?

To learn the 8 staff-related issues that can plague you and adversely affect your net income read the final half of this article by filling out this form (Highly Recommended).

hot-tips-tps-checkbox-1

Fill out the form to read the rest of this article (Highly Recommended).











The Truth About Collections

The Truth About Collections

Accounts receivable and collection percentages are a subject that we hear about frequently. Every doctor has a different idea about what a good collection percentage is as well as how to collect money for services rendered.

For example, I have talked to many doctors that feel obligated to let patients/clients go without paying. They feel guilty about trying to collect from a patient/client if they feel that that person is in a financial hardship.

While this is quite altruistic, what these doctors must also understand is that they can’t continue to provide help to their patients/clients if they can’t afford to keep the doors of their practice open. If you provide a service, you should be compensated for it. Period. Unless you go into a situation knowing in advance that it is going to be a charity case – and there is certainly room for that in any practice, as long as it is planned for – you should insist on being paid for rendering that service.

Of course, this is great in theory, but being able to actually collect all monies owed is another story and requires good group coordination and effort. If you and your staff are trained on how to do this from initial contact through patient discharge, including having the proper policies in place with your staff and patients/clients, your chances of collecting at the time of treatment go up exponentially. We believe that you should be collecting 98% or better of what you are producing, minus insurance adjustments. If you are collecting less than 98%, you are losing net income out of your own pocket.

Instantly receive Part II of this article, Workable Collection Examples and Tips. Simply fill out the form to the right Go to the form

hot-tips-tps-checkbox-1

Request Part II: Workable Collection Examples and Tips (highly recommended).









I am interested in this topic. I would like to receive no-cost, no-obligation personalized guidance on how I can properly manage collections in my practice (highly recommended).


From the Editor: Raising Your Net Profit Through Viable Collections

Do you ever feel that your production seems good, but wonder “where is the net income?” Do you ever ask yourself, “Why am I not taking home more money?” If these thoughts go through your mind, I can assure you that you are definitely not the first doctor to fall into that particular rut as we constantly find this problem from our ongoing surveys of doctors all over North America.

In many practices, proper collections hold the key to a viable net. In this issue of The Practice Solution Magazine we provide information to help you solve collection problems and help raise your net profit. We also provide a step-by-step procedure for your staff to use when calling your patients or clients to collect your fees.

Net can also be affected by conflicts in the office, as well as legal issues and costs.

This issue holds information on conflict resolution by Daniel Bobrow, president of American Dental Company and founder of Climb For A Cause. Climb For A Cause is a non-profit foundation, whose mission is to provide health care treatment and education to people in need worldwide. It seeks to encourage adventure travel, while emphasizing social action, responsibility and accountability. The climb this year is of Oregon’s Mt. Hood in mid-July. If you’re interested in participating, contact Mr. Bobrow using the contact information in the article he wrote for Practice Solution or go to http://www.climbforacause.org. Funds raised from this effort will be used to support dental education and treatment projects in both Guatemala and Cambodia.

We also have another piece by guest writer Dr. Barry Levy regarding legal issues in dentistry, specifically how some dentists are being sued for fraud on certain billing issues.

Net profit for veterinarians is also being hampered by competition from online pharmacies. Staff writer Ken DeRouchie has written an interesting piece on problems veterinarians are having with online pet drug pharmacies and gives some useful recommendations on how to handle the competition. This article was written based upon information Ken gleaned from hundreds of veterinarians he has surveyed for The Practice Solution Magazine.

Within our general news articles, you may find information that can help your practice ranging from news on national legislative issues to technological medical breakthroughs.

It’s quite an eclectic edition of The Practice Solution Magazine this quarter.

Sincerely,

Cory D. Radosevich

Managing Editor