Medicine & Business

Many physicians are surprised when they discover that they may make less money after factoring in the buy-in and that they have no additional security. Of course, that should not be the case.

Just as they recommend preventative steps for their patients, so too should physicians follow a series of steps to prevent financial health problems in their practices.

By working with your patients through education and supportive customer service, and by communicating financial expectations and outcomes, your practice can redirect their loyalty, strengthen the patient-doctor relationship and create additional financial advocates for your practice.

Skyrocketing costs, increasing governmental regulations and legislation, managed care and other third party payors, and increased competition are all important factors which contribute to the drive towards larger medical groups. Innovative thinking and good business planning are necessary to meet the future challenges, and one strong option is for practitioners to become larger through merger.

Installation of a HIPAA-compliant software system may actually help a practice reduce its administrative costs. Two of the principal areas of a physician's practice affected by HIPAA are the practice's billing software and practice management software.

The process of determining the fair market value of corporate stock is an imprecise science. Thrown into the fire of complex litigation and the scrutiny of federal and state taxing authorities, the process becomes incredibly controversial.

While the behind-the-scenes work of integrating staff may not be easy, the end result is worth the effort.

In planning for HIPAA, physicians and practice managers should consider acquiring a computer system that will go beyond basic compliance. Instead, take advantage of the new standardization and mass exchange of electronic data and acquire a combination of computer systems that can provide new financial management capabilities and opportunities.

Significant differences exist in the billing performance of physician group practices. Some practices are struggling to maintain a basic level of billing effectiveness while others have made significant improvements in their billing operations--improvements evident in rock bottom accounts receivable, a higher collection ratio and decreased billing errors.

Many of the most common violations are simple to correct, but being prepared and constantly evaluating your readiness is essential.