5 Ways Your Private Medical Practice Can Cut Costs
Every private medical practice must look for ways to trim its outgoings in order to increase its profit margin.
18:21 16 March 2021
Of course, it is essential to do so in a responsible manner, as practices must not compromise on patient standards to save money throughout the year.
Thankfully, there are different areas you can scale back or improve to boost profitability. Here are five ways in which your private medical practice can cut costs.
- Lower Operating Costs
Every medical practice must look for ways to lower its operational costs without compromising on quality. For instance, your practice could save money by outsourcing tasks such as billing, reception services or typing. Plus, you could secure a more affordable rate for mobile and landline contracts, insurance or energy bills.
- Find the Right Suppliers
Medical supplies will be a necessary expense for your practice. Yet, you could save money by browsing the market to discover a more affordable supplier. For example, if you are running a dental practice, you could find many value-for-money dental supplies at Kent Express, such as filling materials, infection control and impression materials.
- Review Your Marketing Budget
Your marketing budget could drain your practice’s profitability. For this reason, you must routinely review the ROI of your various marketing tactics. Identify how much money you are spending on:
- Sponsored social media posts
- Online, TV, print or radio advertisements
- SEO tactics
Plus, you must estimate how much money each platform is generating for your business. If it is costing more money than it is bringing in or isn’t making a dramatic difference to your profit margin, cut it from your marketing strategy altogether.
- Tweak Your Current Fees
Your medical practice could be underselling its services. If you can’t remember the last time you raised your rates, it might be time to do so. Perform market research to identify how much your competitors are charging for the same services. Also, you must compare your prices against your increasing running costs or business expenses.
What’s more, patients might be willing to pay extra to speak to a healthcare expert in a specific field. Ensure your practice’s rates reflect the quality of your services, local competition, positive patient outcome rates and operational costs.
- Monitor Invoices Daily
Private medical practices must monitor every invoice to ensure they are paid on schedule and in full. As there are many patients to care for and tasks to complete, it might be easy for an invoice to be missed or delayed.
Boost the practice’s cash flow by ensuring invoices are sent to patients daily. Plus, you must identify if payments have been received. If they haven’t, you must have a process in place to follow up with patients, such as payment terms and a notice period.
As you can see, there are various ways to save money throughout the year, from changing suppliers to adjusting prices. Every penny saved or earned will add to your profit margin and improve your practice’s financial security.