While many financial management tools and ideas remain the same from year to year, some of the basics concepts are valuable steps worth repeating. Here are four tips that every health care professional in private practice should be aware of:
1. Maintain Good Billing and Collection Procedures
Ensure that your billing team remains current with the various billing codes and E&M modifiers. Every year there are changes in this area and if you fall behind, so will your collections.
2. Give Yourself and Your Family Some Peace of Mind
Review your insurance coverages for life, disability and even long-term-care to ensure you have adequate coverage just in case an emergency occurs.
3. Reduce Your Taxes
Make sure your practice is paying for all viable business expenses. Expenses such as travel, meals, continuing education, conventions and meetings should never be paid personally.
4. Review Your Debt Terms
If you have practice debt, review the interest rate terms. You may want to consider refinancing if you’d like to lower your interest rate or decrease your monthly obligations. Also, look at your personal debt and see if there’s an opportunity to reduce your cost of borrowing. If you have non-deductible interest loans like educational loans, credit card debt and personal car loans, consider converting the interest to tax deductible interest.
Though financial management in health care can be challenging, it’s important to stay up-to-date on the new laws, procedures and guidelines to ensure your practice operates smoothly and you’re financially prepared for any emergencies. Good recordkeeping and organization are the first steps to ensuring your practice is run efficiently and up to its best potential. I95
A partner of Naden/Lean LLC, Darryl Bodnar provides expert advice on accounting, tax strategies, retirement planning, practice purchases & sales, practice ownership transitions, and partnership matters. His tenure as past managing partner of the firm, current CFO and a member of the firm’s executive management team brings the finance, operational and strategic experience to help professional practice and business owners with issues that arise in developing and operating a successful organization.