In better performing practices, costs are closely monitored. Controlling overhead is critical to maintaining good financial health in today's environment of increasing administrative costs and decreasing reimbursements. Following are tips to help you maintain control of some practice expenses.
Request closed bids from vendors. Expect your vendors to provide closed bids on the products and/or services you use on a regular basis. Do not respond to requests by vendors to furnish bid information from a competitor. A smart vendor will already have an idea of vendor prices in its market. Each vendor should be aware of its percentage of profit for products and whether it can maintain a particular bid price over time.
Manage inventory. Centralize the ordering process and assign one person to handle the process from start to finish. Centralizing the process helps eliminate duplicate orders and provides a system to monitor prices on medications or supplies billed to patients. Tracking the cost of supplies provided to patients helps assure appropriate reimbursement rates. You also can manage inventory by:
- Establishing an order log to record purchase orders;
- Matching products received against the purchase order, packing slip, and invoice to assure an invoice is paid only one time and all items were received; and
- Taking advantage of volume discounts and delayed shipping to manage storage space.
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