Physicians are scrambling in reaction to changes in the business of healthcare. Understandable! But by anticipating the worst that might happen (and no one knows what really will happen), physicians are missing out on clear opportunities to reduce expenses and maximize profitability right now. Does that mean forming an ACO, creating a mega practice or creating an offshore trust? Nah, nothing so complex. It’s the simple stuff that STILL needs attention.
Few things are as sure as tried and true practices which have demonstrated their value over time. Instead of focusing just on inventing a new wheel or redesigning healthcare, focus on what you can control, like:
Billing and collection. When was the last time you took a good look at your practice’s billing and collection? Has your accountant taken a close look at it? Does your contract with your billing and collection firm have performance guarantees? Why not? This is simple step 1 sort of stuff and must be done on an ongoing basis.
Managed Care contract analysis and disputes. Do you know what each contract you participate in is required to pay you? Is your computer set up to track compliance with the terms of each contract so that you can be sure you are getting what you’re owed? Basic stuff. Are you aware of the dispute times frames and criteria under Florida law? Have you appealed a payer decision? Do you know that many payers “win” simply because their decisions are rarely appealed administratively?
Reduce overhead. What are your biggest overhead expense items? When looking at personnel expenses, for instance, do you know the reasonable range of salaries and benefits? As far as overhead expenses, did you know there are businesses that promise to reduce your overhead and only get paid when they do so?
Coding audit. Is your coding accurate? If not, the likelihood, according to most experts, is that you are losing a lot of money each year. Contrary to popular belief, self directed coding audits most often result in found money! On the risk aversion side, getting coding wrong can result in thousands of dollars in False Claims Act exposure.
Business plan. Do you have a business plan? Wouldn’t you want any business you invest in to have one? How can you get where you’re going if you have decided where you want to go? Do one or hire someone to do one.
Business leadership. How much time are you spending on details that can better be handled by someone else? Most physicians find that their highest and best use is in practicing medicine, not managing a business. Most physicians don’t have the business experience or training necessary to run and grow a business. Unfortunately, most practices in Florida are on the small side. Are you aware there are experienced part-time business consultants who can deliver real value far in excess of their costs? If your practice generates $5 Million or more each year, it ought to look at full-time professional management. And as far as trusting someone with your asset, look at fidelity and surety bonding them.
Marketing. In a market when purchasing is down, as in today’s healthcare market, where are the smart businesses spending money? Marketing. That means things like web site development, search engine optimization, the right sponsorships, ads and such.
In dynamic times like today, it is easy to become paralyzed by fear and indecision. Reminding yourself that healthcare business transforms roughly every five years in fairly regular and fairly predictable cycles is a good thing to do (e.g. the PPM industry, the IPA and PHO times). Focusing on what you can actually do to improve your situation is much better!
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With over 20 years of healthcare law experience following his experience as legal counsel for the Florida Medical Association, Mr. Cohen is board certified by The Florida Bar as a specialist in healthcare law. With a strong background and expertise in transactional healthcare and corporate matters, particularly as they relate to physicians, Mr. Cohen’s practice immerses him in regulatory, contract, corporate, compliance and employment related matters. As Founder of The Florida Healthcare Law Firm, he has distinguished himself and his firm for providing exceptional legal services with the right pricing, responsiveness and ethics.
