Challenges of Revenue & Profitability

• Family Practitioners earning an average of $241,000
• Non-Invasive Cardiologists earning an average of $427,000
• Gastroenterologists earning an average of $487,000
• General Surgeons earning an average of $350,000
• Neurosurgeons earning an average of $687,000
• Obstetrics and Gynecology earning an average of $324,000

You may be wondering, if revenue is actually increasing, why are doctors struggling with revenue and profitability at their practices? The reality is that reimbursements have become increasingly complicated due to the financial burden that has fallen to patients by way of high deductible insurance plans and the increasing documentation burden on providers from payers who, by the way, are also often paying less than they have in the past. On top of these issues, the expenses of keeping a medical practice going continue to increase, leaving the doctors who run those practices struggling to figure out how to increase revenue or cut costs.

Overall, the biggest issue facing medical practices when it comes to getting money in the door is the shift of financial responsibility for healthcare to the patient. Many patients can’t afford the medical expenses they’re facing. For the rest of the patients who actually can afford to pay those bills, it’s not something they’re used to worrying about and without convenient ways to make payments on their time, they often forget, leaving the practice in a lurch waiting for accounts to be brought current.

This is what happened to one practice in Modesto, California. As financial responsibility shifted to patients, they continued to operate as they always had, accepting patient payments over the phone only during their normal business hours, which were also the hours that most patients were at work and unable to pay their medical bills. As a result, they weren’t getting the money they were owed and their patients weren’t happy with their experience. This was obviously causing issues with revenue and profitability. So they made the decision to utilize online patient payments and quickly saw the difference having a convenient, automated, and streamlined system in place for their patients made. Now they’re receiving payments on time and their patients are much more satisfied than before.

Whether revenue is truly decreasing or just feels like it, practices must continue to evolve with societal changes in order to see the greatest amount of profitability. That starts with changing up your business model. As with any other business, lowering overhead costs is a good place to start. While this idea often brings to mind staffing reductions, that’s not the only way to accomplish a stronger bottom line.

Another option is to shop around for all the supplies and services that your practice uses to see what you can get for a lower price. This might also be a good time to shift to more virtual care, as that requires less in-person staff and expensive PPE, lowering operating costs. By using virtual visits you can see more patients, more efficiently and you’re also likely to attract even more patients who appreciate the convenient option of virtual visits, increasing revenue along the way.

It’s also important to utilize patient engagement tools. Many of your patients are already likely using wearables. See how you can utilize these gadgets and the data they produce to engage your patients in being more proactive about their health. This could lead to the ability to earn some revenue through monitoring patient generated health data, especially in your chronically ill population. Invest in automated patient reminders to ease some of your staff’s busy work, allow your patients to respond more quickly and conveniently, and give you a more accurate idea of where your schedule stands so that you can make adjustments accordingly. And make sure that your practice is on social media. Your patients are certainly spending time online, so take this opportunity to connect and be seen as an overall resource, not just the place they go when they aren’t feeling well.

Get set up to collect online patient payments. As a society we’re used to being able to take care of our financial matters quickly and conveniently online; if you want your patients to bring their accounts current, you need to be allowing them to do so their way. And while you’re at it, implement better RCM processes overall. Train your staff to collect patient payments at the time of service. Keep detailed notes on the status of patient accounts and follow up accordingly. Consider using electronic statements to streamline the billing process and reach your patients more efficiently. Get set up to have a patient credit card on file and authorized for regular payments in order to keep your accounts receivable up to date.

MicroMD’s software enables providers to increase revenue streams and profitability so your practice can see a greener bottom line. We start with MicroMD PM, our full-featured practice management software that offers advanced scheduling, patient registration, billing, claims management, robust reporting, and more. From there, utilize one of our preferred clearinghouse partners, all of which are fully integrated with MicroMD and feature coordinated enrollment, setup, implementation, training, and support to give practices outstanding billing services fast.

We also offer Worldpay ePayments and Revspring eStatements to streamline the billing and payment process, breaking down the barriers to receiving patient payments. Finally, when you’re ready to adjust that business model and embrace virtual visits, MicroMD can help with our Virtual Video Visits powered by Medpod, designed to increase patient satisfaction, enhance your model of care, and grow your practice.