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Financial Tips for Healthcare Small Businesses

Healthcare small businesses have it tough.

It’s difficult enough to keep anysmall business afloat – there’s a learning curve to deal with, thin staffing and shoestring budgets. But healthcare companies have some added “bonuses” to deal with – frequent changes to Medicare and Medicaid, regulatory compliance, the rapid implementation of technology …

… and, of course, skyrocketing costs.

Finances might be one of the most difficult aspects of piloting a healthcare small business to success. There are numerous factors working against healthcare companies, from high input costs to complicated insurance networks, and smaller companies naturally have to deal with smaller budgets, too. Every little bit helps, which is why we have a few financial tips for healthcare firms that are trying to build roots.

3 Tips for Budding Healthcare Small Businesses

1. Know Your Codes:Whether you’re a doctor, health insurer or otherwise in the healthcare field, chances are you’re familiar with ICD codes. These codes represent diagnoses – whether it’s the flu or a broken arm, there’s an ICD code for it. In fact, there’s a code for nearly everything – the ICD-10 standard includes 68,000 codes – more than five times greater than the number of codes under the ICD-9 standard. Complicated as this laundry list of codes might be, getting them right the first time is the key to getting paid on time, so it’s vital to integrate coding tools with your existing software to ensure accuracy, which in turn will ensure that you’re properly and promptly reimbursed.

2. Smart Purchases:Unless you’re a healthcare IT company, chances are you’re loaded down in supplies of several sorts, whether it’s syringes, gauze, printer paper or even napkins. Each thing you order is a chance to achieve cost savings. Whether it’s locking down a price via a long-term contract, or using products made out of reusable materials, there are numerous ways to save on costs by simply being more mindful about the things you purchase for regular use.

3. Lean on Technology:In some ways, healthcare is being shoved into the waiting embrace of technology – just take the conversion to electronic health records as a prominent example. But there are many ways that healthcare companies can grab the bull by the horns. For instance, data analytics can help companies discover missed opportunities across the entire patient process; online portals can make it easier for patients to communicate with doctors and pay their bills; and many areas, such as denials, can be improved upon by replacing outdated systems and going paperless.

Looking for other ways to save? McManamon & Co.’s business consulting services include a deep knowledge of the healthcare industry, so we can provide solutions in several key areas that improve your organization’s financial wellness, including increasing revenue and containing costs.

Companies that can’t navigate the many wrinkles of healthcare finance eventually will flatline. Call McManamon & Co. at 440.892.9088 or contact us online today to keep your company ticking.

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