Free Fiscal Fitness Checkup for your Medical Practice

Need For an Annual Checkup

A healthcare organization is like any economic entity. Although doctors do strive for a higher cause, it is done within the framework of solid economic realities.

And these realities deem (like for any business setup) that periodic checkups be done to gauge the health of the entity, to investigate if things are on track in the various departments, and to align individual goals with that of the organization.

The Time For the Checkup

Depending on the size of the practice; whether small, medium-sized or huge, such a checkup may be enabled on an annual, semi-annual or quarterly basis. A quarterly checkup for a small clinic of 3 or 4 physicians might be just overkill, thus the frequency of the checkup is directly proportional to the size of the unit. Also, it is not necessary that annual checkups coincide with the end of the financial year.

That period of the year might be better utilized for other relevant tasks like tax plans etc. Thus, an annual checkup may even be set up such that a particular component check is done either at the beginning or the middle of the year, or whenever it is deemed pertinent.

What the Checkup Entails

A healthcare practice annual checkup may cover the entire gamut of the so-called factors of production, i.e. land, capital, and labor. These classical economics terms translate into everyday parlance of healthcare industry as real estate contracts, equipment contracts, and staff and provider compensation respectively.

Add to this trinity the fourth parameter from Keynesian economics in the form of government control. The equivalence in healthcare is in the form of codes revision/updates and payer rules and their contracts.

The Purpose of the Checkup

Of course, the purpose of the checkup is to renegotiate a better price with the seller. This is made possible because with every passing year manufacturers of equipments try to offer ever more attractive prices in an effort to lure more and more customers and outsell competition

In the case of real estate contracts, whose terms may not be annual, scrutiny of the contract may be just a routine task most of the times. But then things may have been brewing in your local real estate market such that it makes possible for you to renegotiate a more attractive lease. Or maybe you just need to make sure you are not violating any Medicare policy or anti-kickback laws.

Staff and Provider Compensation

Staff appraisal is more than just a matter of sitting face-to-face with them and listing out their achievements and failures. It is a time to align their personal goals with that of your organization, and to appreciate their efforts thus far. A roadmap detailing their path of progress would go a long way in boosting their morale, and this would surely trigger a positive chain reaction in your clinic.

The Provider Compensation is altogether a different cup of tea, and you need certified CPA's with a rich background in healthcare industry to make sure the providers stay happy. Else, sooner or later an unhappy provider is going to jump ship either alone or along with your star performers.

CPT, ICD, HCPCS Codes – Changes

CPT codes are updated every October and ICD-9 has transmuted itself into the complex behemoth of ICD-10 with ICD-11 already being planned. It thus becomes essential that your practice is aware of the latest updates. Also you need to heed to certain best practices to ensure your reimbursements stay on track.

One of these best practices involves constantly checking the CMS.gov website to see if any scenarios mentioned there is pertinent to your practice. Also, an internal audit can ensure that you don't become a sitting duck when a RAC audit ensues. Also you have to check your superbills to make sure the diagnoses are still pertinent and if there is something that needs updating.

Payer Contracts

Although a very prevalent thought is that a fee schedule is set in stone and non-negotiable; it pays to know that there is always room for re-negotiation of rates once a new year turns up. This is due to hitherto unseen situations cropping up, which might give the clinic room for leverage, e.g. a neighbourhood clinic closing up and your's might be the only healthcare center for miles around.

Knowing The Future

With our financial report you can develop an annual budget. Monitor your practice overheads and income flow. Know the cost of running your practice and collection rate. It will help you to allocate revenue and handle expenses effortlessly. But knowing the future of your practice is by far the most important reason why you must sign up for our Free Fiscal Fitness Checkup.