If your medical practice is like many today, rising overhead costs, along with falling revenues, are eroding your bottom line. It may be time to take a hard look at your practice’s billing process, coding patterns, and cost structure. But where should you start?
Benchmarking of a practice’s key financial indicators will reveal how the practice measures up to other practices of the same specialty. For example, when TMA’s practice consultants work with practices, they compare the practice’s data with national and area survey data to determine whether the practice needs to modify key processes. After compiling their findings, the consultants provide practices a written report with specific recommendations for improved operations.
Want to do some of your own research and brainstorming? The Medical Group Management Association (MGMA) and specialty societies have national benchmarking data available to their members. Also, the Texas Workforce Commission provides current regional wage information. And, try out these tips and tools from TMA:
- To collect your own data, use the TMA Financial Trend Tracker. This free online tool for TMA members can help you track monthly and yearly net collection ratios, accounts receivable percentages, and new and established patient visits. The tool presents a practice’s key performance indicators via easy-to-read graphs and charts.
- Read TMA’s publication, Business Basics for Physicians, for an overview of accounting basics, budgeting, long-range planning, hiring, and more.
- Check out these TMA practice e-tips:
To get a complete, expert assessment of your practice’s status so you can improve your practice operations, turn to the experts in your organization — the Texas Medical Association. To work with a consultant, contact TMA Practice Consulting at (800) 523-8776 or practice.consulting[at]texmed[dot]org.
Published Sept. 24, 2015
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Last Updated On
June 01, 2016