Are These Hidden Costs Impacting Your Bottom Line?

Small financial leaks can add up to major losses in a medical practice. From inefficient electronic health record (EHR) systems to uncollected patient balances, hidden costs quietly chip away at profitability — often without obvious warning signs according to a recent Medical Economics article.

Understanding where these losses occur is the first step toward protecting your bottom line. Whether it's optimizing billing processes, renegotiating payer contracts or tightening up patient scheduling, even small changes can drive meaningful improvement.

According to the article, opportunities for change include:

Is Your Electronic Health Record System Working?

Outdated or inefficient electronic health record (EHR) systems can significantly hamper a medical practice's efficiency and patient satisfaction. Clunky interfaces, slow response times and lack of integration with other systems can lead to increased administrative workload and longer patient wait times. Moreover, the inability to effectively manage patient data can result in errors and compliance issues.

Solution | Regularly assess your EHR system's performance and consider upgrades or replacements every 2-3 years to ensure optimal functionality and compliance with current standards.

Inefficient Billing Coding Can Cost You Thousands

Inaccurate billing and coding are common issues that can lead to claim denials, delayed payments and compliance risks. Errors such as incorrect patient information, duplicate billing and upcoding not only affect revenue but can also result in legal complications.

Solution | Implement regular audits and provide ongoing training for billing staff to minimize errors and ensure compliance with the latest coding standards.

Underutilized Staff Time

When physicians and medical assistants are burdened with non-clinical tasks, it leads to inefficient use of their time and skills. This misallocation can result in longer patient wait times, decreased job satisfaction and increased operational costs.

Solution | Delegate administrative tasks to appropriate staff, automate routine processes and optimize workflows to ensure clinical staff can focus on patient care.

Appointment No Shows

Missed appointments can significantly impact a practice's revenue. Each no-show represents a lost opportunity to provide care and generate income. Additionally, frequent no-shows can disrupt scheduling and reduce overall efficiency.

Solution | Implement automated reminder systems, offer flexible scheduling options and establish a clear no-show policy to minimize missed appointments.

Bad Contracts

Accepting payer contracts without thorough review can lead to unfavorable reimbursement rates and terms. Over time, this can erode a practice's profitability and financial stability.

Solution | Regularly review and negotiate payer contracts to ensure they reflect the value of services provided and align with current market rates.

Excess Inventory

Overstocking or mismanaging medical supplies can tie up capital and lead to waste, especially when items expire before use. Inefficient inventory management also increases storage costs and the risk of compliance issues.

Solution |  Implement an inventory management system that tracks usage patterns and supports just-in-time ordering to reduce waste and optimize stock levels.

Scheduling Management

Poor scheduling practices can result in uneven patient flow, overbooking and underutilization of resources. This inefficiency not only affects patient satisfaction but also increases staff stress and operational costs.

Solution | Use scheduling analytics to identify patterns and adjust appointment slots accordingly. Implementing intelligent scheduling software can also enhance efficiency and patient experience.

Contact LACMA and we can assist you with finding the right partner to solve these and other problems your practice might be facing.