Manage Expenses and Increase Revenue
Does the economic slump have you hurting financially? The most common answer for dermatologists is a resounding YES. We took it for granted during the good years and focused a lot of our practice on generating more cosmetic revenue while pushing the insurance patients to the side. This means that we probably lost some patients but that we also experienced a significant growth in our revenue. What do we do now that the good times are long gone? With looming Medicare cuts, poor insurance contracts, and rising costs, it is important that you set goals for your organization and put pressure on your people to perform.
SET GOALS for Revenue and Cost Reduction
What would you like to see as far as cost reduction? 10%, 25%- What is needed for your office to limit layoffs and increase margins?
How much would you like to see on the revenue side and what will you do to get there?
Revenue Creation Ideas:
- Create a brochure and deliver to nearby offices when you are slow.
- Renegotiate current managed care contracts and add other insurance companies that may pay more
- Improve Web presence and search engine position to increase your internet traffic
- Run referral reports to see who historically has been referring to you and what they are doing now
- Do community outreaches at local universities, retirement homes, schools and rotary clubs. Free PR is always available for these events as well, check with your local paper to see what is going on in your area.
- Another great place for skin screenings is your local gym or YMCA, this is something that can even be done monthly and really helps generate awareness and increase patient volume.
- Contact local health magazines and find out about writing health articles for them or promoting events.
- Focus on the generating more profitable cases, whatever those may be. (Ex: Mohs, Acne Surgery, Discounted Facials, Discounted Cosmetics, Skin Cancer Surgery)
- Analyze provider productivity and ensure efficient use of providers time, if patient volume is not adequate look at reducing providers hours or having them visit other offices during their downtime
- Do not turn patients away, look at opening evenings or Saturday mornings if it will help
- Provide Self Pay discounts to the uninsured and market this to your community
Cost Reduction Ideas:
- There should be absolutely NO OVERTIME
- Speak with every vendor and tell them that you have offers from other companies hungry for your business and that you need them to work with you on pricing.
- Meet with staff and let them know that you need ideas to save money
- Cut everyone back to a four day work week
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