We have seen the emergence of two types of practices during this pandemic. The first type being paralyzed with fear and shutting down every aspect of their business in an effort to preserve and maintain. The second being those that are learning to pivot and maintain their forward motion during difficult times.
Remember Newton’s first law of motion, the Law of Inertia:
“An object at rest stays at rest and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force”.
It is fair to say that Covid-19 could be considered an unbalanced force. It most definitely has slowed most practices in the country down. Your practice was in motion prior to Covid-19 and it is up to you to decide if this virus is going to put it to rest.
The practices we are seeing that are choosing to pivot and keep their motion are using this time to prepare themselves for reopening and maximizing the time to ensure their forward motion gains momentum once restrictions have lifted.
Every day I’m afraid for those practices that I hear from that are locking down everything, cutting costs, scaling back, and are using those tactics for their survival plan. I don’t expect to see those practices weather this storm very well, and if they do, regaining their forward motion is going to be difficult at best.
The biggest piece of advice we are offering practices right now is to use this time to your benefit. Review your systems. Figure out what has been working and what needs adjusting, then start implementing those changes so you can hit the ground running when the time comes.
A favorite phrase of one of our founders is “The easiest money you make is the money you don’t spend”. Now that does not mean cutting expenses, or not investing in services that could benefit your practice revenue.
Say for example you are operating an $800,000 a year practice but you are seeing 50% in write-offs. Now you are at $400,000. But what if you could adjust those write-offs to be only 40% or even 30%. That’s an additional $80,000 to $160,000 a year for doing nothing more than optimizing and making the most out of your PPO fees and participation. That 50% write-off is money you ARE spending.
Those increases are not from spending more time in the practice or increasing patient visits. Optimization means doing the same work and increasing your profits significantly while reducing your overhead automatically.
Many practices are faced with cash flow difficulties right now with the inability to see patients. This also means you more than likely have extra time on your hands. Use this time wisely and set yourself and your practice up for success. Stay in motion.
If you have questions about PPO optimization, please reach out. We are happy to schedule some time to educate you on the insurance companies and what is working for practices right now. Click here to schedule now or call us directly at 844-464-2777. We are here to help you through Covid-19 and help you see your most profitable years yet.