To be profitable, medical and dental practices must be seen for what they are: businesses that provide a product, even though the product is healthcare.
Many medical professionals have testified to opening their practices believing their medical expertise and bedside manner would suffice as long as they were diligent, competent, compassionate, and hardworking; somehow the practice would make money and financial matters would work themselves out.
A large number of medical professionals receive very little training in college and medical school on how to run a business or practice.
They don’t sufficiently understand medical billing and how insurance companies work.
In some cases, they aren’t entirely sure about how a medical office actually makes money or what all of the accompanying costs will be.
In reality, a lack of business-management knowledge makes financial decisions difficult for budding medical entrepreneurs.
Costly mistakes are common as doctors and dentists stumble through on-the-job training in accounting and how to run a business.
After years of schooling and residencies, doctors naively begin a different kind of education when they open their first practices and enter the business world.
On top of all that, some doctors find their compassionate drive to care for patients is in conflict with their practice’s persistent demand for money to cover costs.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services can take care of all that “stuff” so the doctors and dentists can focus on providing the best patient care.
There’s a lot to running a medical business. The front-end operation makes money and the back-end operation tries not to spend it.
Regular analysis of meaningful financial statements and appropriate responses to that data bring it all together.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services realizes that medical office efficiency is centered on the doctor or dentist. They are, after all, the practice’s primary asset and profitability is closely tied to efficiency.
As such, it’s critical to implement effective systems for everything that a practice does. For example good patient flow, proper scheduling, patient callbacks, mail management, making deposits, getting new business, etc.
Efficiencies must be trackable and adjustable when necessary.
Additionally, Sherman Oaks Accounting & Bookkeeping powered by One Source Services can help protect a medical practice’s assets by working with attorneys to establish a risk-reducing entity structure.
There’s an inherent risk to practicing medicine, one that doctors and dentists are well aware of. Insurance provides some protection against this risk, but many insurance policies have incident caps far lower than some judgments that have been brought against physicians in the past.
The correct entity structure will legally lower a practice’s tax bill, as well. Along with the help of an excellent accountant like the ones at Sherman Oaks Accounting & Bookkeeping powered by One Source Services, of course.
An efficient medical office with happy patients, happy staff, and happy doctors will be a more successful practice.
As accountants, we leave the medical procedures to the doctors. In turn, doctors should leave the financial procedures to us!