3 Common Profit Leaks That Cost Chiropractors Thousands of Dollars While some chiropractors need to get more patients in the door to grow, most established practices can find significantly increased profits by focusing on firming up their systems and preventing revenue leaks. In fact, most chiropractic practices have an average of 25-35% profit leak without ever knowing or doing anything about it. In the doctor’s defense, there is a lot to manage. There’s providing patient care and building those relationships, monitoring staff, taking care of SOAP note documentation, making sure the business is compliant, marketing the practice, accounting, running all day to day operations, and at least a dozen other details that require daily attention. Without solid procedures, systems, and tools in place, everyday tasks will start to wear you down and dry up cash flow. The sooner you identify these problem areas, the sooner you’ll be able to identify where your business is leaking revenue. Then and only then, you’ll be able to find solutions and improve your revenue cycle. Since we have worked with all types of chiropractors for several years, we have identified the 3 most common profit leaks seen in a chiropractic practice. 1. FRONT DESK PROCEDURES Many docs make the mistake of viewing the front desk primarily as their “customer service” center. Consequently, their opinion of a successful employee at the front desk revolves around a bubbly personality, a friendly face, and a welcoming smile. While these features are indeed helpful to have, chiropractors also need to appreciate that the front desk isn’t just the face of your chiropractic practice—it’s a critical data entry point to ensuring complete and accurate collections, appointment scheduling, and a host of revenue producing activities. In that respect, the front desk staff have unique opportunities to verify or confirm patient insurance information, obtain important patient demographics, convey past due balances, discuss billing options, and collect payments over the counter to produce the best possible results on your collections and accounts receivable. Great front desk staff actually make the billing cycle shorter, reduce A/R and help you get paid better for what you are doing by proactively eliminating time consuming tasks that often get pushed onto the already overworked billing department. On the other hand, without efficient front desk processes in place, your A/R will always be higher than it should be as staff are missing an important window to address payment issues and prevent billing problems for your patients and your practice. To make matters worse, poor front desk systems will not only affect your collections, they will even handicap your services as appointments be missed and not rescheduled, care plans are ignored, and necessary services fall through the cracks. If you don’t have an All Star in your front office then you had better have an A+ billing team to cover their tracks and resolve billing issues to ensure maximum reimbursements. A Best Practice will have both. How dangerous can poor front desk procedures be? Some quick math can reveal the disastrous potential. According to industry stats and surveys, the average chiropractor sees approximately 100 patients per week and is 80% insurance based. That’s 80 or so patients a week who owe copays, coinsurance, deductibles and/or past due balances. If you take an average patient … read more →
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