The Texas Medical Association recently published its “Road to Recovery: A Guide for Reopening Your Practice Post-COVID-19.” It contains steps for practice operations, financial operations, clinical operations, human resources, and customer service. During their town hall phone conference mid-April, 60% of their poll respondents indicated they had lost between 50-100% of ALL their revenue since the start of the pandemic. While the guide contains a lot of valuable information, there are a few key operational opportunities where it does not provide enough level of detail.
- Developing a Budget. We all know that the vast majority of small businesses do not do ANY budgeting. So our recommendation is to let your accounting software and ERP consultant create a draft budget for you based on your historical performance and then you can tweak/modify. If you do nothing else but create and work a budget, you will see a Net Profit increase of 1-3% of your Gross Revenue. Is another $20,000-$100,000 in cash worth that to you?
- Leverage Cloud Technologies. Many healthcare practices can reduce the number of people in their offices if they are leveraging cloud technology and integrated applications between their billing/EHR, accounting, CRM, and marketing applications. There are a variety of software applications that automate day-to-day business functions while creating seamless workflows. Wouldn’t it be nice if you could leverage those instead of having manual processes and paper-based approvals to float around the office?
- Working Remote. Additionally, as not every person in your office is client-facing, the accounting, payroll, or marketing staff could work remotely if you are using cloud-based technology applications. If you are still using software that is loaded on your own servers, this would be a perfect time to instruct your practice manager to research cloud-based options.
- Security. With patient security at the top of everyone’s list, it is important to find a financial solution that is HIPAA-compliant. It is common for new practices and physicians to use QuickBooks Online as it is very familiar, however, one of its biggest limitations is that it does NOT meet the HIPAA (Healthcare Insurance Portability & Accountability Act) compliance requirements. If you use a unique identifier for a patient, it requires “extra steps” for your staff to match the identifier to the ID, so that you can create invoices, mail refunds, etc. In the age of technology, everyone is trying to streamline operations and improve efficiency, so anything that creates extra steps or added work should be reviewed to see if it can be done differently.
Express Information Systems has been implementing and supporting best-in-class software solutions, such as Sage Intacct’s financial accounting/ERP platform, with many of our healthcare clients. The doctors love their personalized dashboards by giving them real-time financial visibility. The staff loves it because they have automated workflows/approval processes so doctors can approve invoices on their phones and the staff does not have to wait to do any processing. The auditors love it because it is the ONLY HIPAA-compliant cloud-accounting solution, which provides the trust and security of your internal controls.
Are you ready to learn more about Sage Intacct? Connect with Express!