4 Steps to Building Medical Office Financial Success

If your medical office has been performing poorly in recent years (or even in recent months), it is time to develop a new plan for medical office success. This is simply a plan of action to help turn around areas that are declining or failing to thrive.

While no two medical offices are the same, there are some problem areas that are universal within the ​healthcare industry. To effectively bring about positive change, you must identify the problems in your medical office and implement corrective actions. A medical office assessment can help you identify the areas that need to be addressed in order to develop a new plan for success. Conducting a medical office assessment is one way to identify opportunities for improvement.


Reduce Unnecessary Expenses

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Reducing unnecessary expenses requires developing strict and cautious spending habits. Focus on areas in which expenses can be cut down or out completely. Consider the expenses that are not essential to the operations of the medical office.

Office parties are one example of nonessential expenses. While office parties are a great way to boost employee morale and keep employees happy, they probably prefer annual increases and job security. Instead of the medical office paying for all the expenses, have potluck parties in which the staff contributes the majority of the food, snacks, and decorations. This is just one example, but there are many ways to reduce those unnecessary expenses.


Let Go of Unprofitable Patients

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It sounds harsh. However, a medical practice is like any other business. It can only stay in business if it is profitable. The bottom line is that patients who do not generate a profit are part of the problem. If a patient is utilizing the resources of the practice but is not financially beneficial, then it is for the betterment of the medical office to discharge the patient.

Not only is it your responsibility for the medical practice to let go of unprofitable patients, but you also have a responsibility to your staff and other patients. Although it would be unfortunate if you find yourself in a situation in which you must let go of a patient, regardless of the reason, it is well within your legal rights to do so. Just be sure you follow a specific method of doing it that aligns with the mission statement of your medical practice.​ ​​


Partner With a Specialist

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Partnering with a specialist is an excellent way to improve the financial conditions of the medical office. A specialist brings along a new stream of patients, some of which may cross over to other physicians in the practice. In addition, the specialist may bring a fresh, new perspective to the medical office that can increase revenues. 

If you have a solo practice, you can partner with other physicians to form a single-specialty group practice, a multi-physician group practice, or a physician practice management company.​ 


Identify the Root Cause

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If your medical office was performing well initially and then one day it just stopped, there has to be a reason for it. Before you get started on making any type of change in the medical office, it is necessary to identify the real cause of the financial downfall. Many times the symptom of a problem is what is addressed because it is the most obvious to notice.  

Unfortunately, addressing the symptom sometimes makes the problem get worse. It causes the medical office to spend time, money, and other resources focusing on the wrong thing.  The only way to effectively implement change is to address the problem itself. Here are just a few ways to identify the root cause of your medical office problems.

  • Never make any changes based on assumptions
  • Perform an assessment to generate a list of problems
  • Explore the list of problems
  • Use deductive reasoning to determine the problem
  • How to identify the root cause of your medical office problems
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