While uncovering hidden revenue is always a great way to increase your bottom line, managing your existing expenses may be an even easier and more effective way of boosting your healthcare organization’s revenue. There are several ways to approach managing your current expenses. The most effective ones normally include auditing your current accounts receivable management practices as well as your revenue cycle to see what is working, what isn’t, and what can be improved.
Check out these 4 tips to get a head start on managing your expenses to increase revenue.
1. Audit your expenses.
What does your organization actually spend money on? Do you have thorough expense reports every month? Take inventory of all of your regular and irregular expenses, and see if any of them look like they could be cut or used for more than one process. Consolidating your expenses, especially when it comes to hiring outside vendors and paying for recurring subscriptions, may be the way to go.
2. Slash any unnecessary expenses.
Now that you’ve audited your expenses, the next step is to slash all of the expenses that you can do without. Is it really worth paying a monthly subscription fee to a software program that you only use once a month, if even? Are you paying for a more expensive version of your patient portal than you need to be? Do a bit of outside research and see what alternative programs and line items cost, and consider switching over if you can get a deal by doing so.
3. Outsource your collections.
You may not have thought of it, but if your current collections people aren’t recovering at a high rate, investing in an outsourced vendor to take care of your accounts receivable management may more effectively manage your expenses to increase your revenue. Although an agency may cost a little more than having your own collections staff, you’ll most likely make up the difference and more in a better recovery rate. This is especially true if your collections agency of choice specializes in healthcare recovery.
4. Negotiate your overhead.
When’s the last time you negotiated your lease? Have you ever even thought about trying to do so? As a healthcare practice, you likely have been paying fairly set-in-stone costs for utilities and your lease, but try negotiating with your providers to see if you can get a better rate. Starting off the conversation by reminding them that you’re a loyal customer is always a great way to get started on the right foot. Although you may receive a no, you may be able to switch providers for utilities like electricity. And you’ll never know without trying in the first place.
You may be surprised how much you can increase your revenue by taking a good hard look at your expenses and taking action. It’s definitely worth a shot! For more assistance with accounts receivable management and increasing your revenue, contact Frost-Arnett at 1 (615) 326-6852. We’d love to learn more about your healthcare organization and see if we’re the right fit.