Running a medical practice isn’t for the fainthearted; it’s complex and multifaceted. You must not only provide optimal health care for patients, but also operate efficiently and profitably.

There are many factors that go into this equation, including obtaining the latest technology to better serve your patients, staying on top of current developments in your field, and hiring and training specialized staff. So, it’s easy to lose sight of the fundamental importance of maintaining a strong revenue stream to ensure your business succeeds over time.

Do you mean business?

There are various ways to stay on top of your revenue streams. For starters, you can meet regularly with your staff to review financial reports, use benchmarking to identify reasonable revenue goals based on what’s normal in other similar practices, and then set those revenue goals for a given period (perhaps quarterly, as well as annually).

In addition, compare what’s happening this year with what happened last year. Audit patient charts regularly and look at 10 charts a month (per provider) to ensure they’re entered appropriately. You also may want to hire a professional billing service to occasionally spend a day auditing your charts and receivables.

Can you stop revenue leakage?

Even when you engage in the best possible business practices, losses might still occur. Here are some ways to stop revenue leakage:

Get your money at the time of service. If a patient owes a co-pay, ask for it. Collect as much up front as is feasible. Create processes and procedures that make it easy to collect fees owed, such as accepting cash, checks and credit cards. You can and should make exceptions, but the bottom line is that a medical practice is a business. Make every effort to ensure no one leaves the office without paying what’s owed — whether it’s a bill or a co-pay.

Educate patients on estimated expenses. When discussing an expensive and complicated procedure, such as a surgery, develop a standard financial estimate and agreement that you can use to inform patients about the costs. Put it in writing and ask patients to read and sign it. In each case, both the practice and patient should receive a copy.

Audit your computer systems. Computer systems are remarkably reliable, but they’re not necessarily 100% accurate. It’s imperative that you understand what your computer system is actually doing. Sometimes, practice management software features can cause inadvertent problems.

For example, one type of software required someone to hit “print claim” after a transaction was saved. The claim was then sent electronically. But if staff failed to hit the “print claim” button, the claim wasn’t sent. Instead, it showed up as an outstanding balance — even though the insurance company had never received it. Be sure to thoroughly train staff on correct use of your practice management software. Doing so should include occasional refresher training as the software is updated. Many medical software companies offer free webinars.

Offer more services. Explore other medically appropriate services that could bring in additional revenue. If a patient comes in with a specific ailment, consider it an opportunity to offer a more thorough checkup, which could result in more targeted services and care. In addition to providing more comprehensive care for the patient, you may generate more revenue.

Work proactively with insurers. As most physicians know, filing an insurance claim and getting exactly what you expect to receive is rare. Closely study and regularly update your insurer contracts. Review your price lists and send them to insurers as you revise them. From time to time, insurance carriers change their reimbursements and — even more rarely — increase their reimbursements. Appeal claims and get to know your state Medicare liaison. Join your state’s specialty medical association to pool resources when dealing with insurers.

Consult a professional

Keeping close tabs on your revenue streams is among the best ways to keep your medical practice thriving. Whether you need help tightening up your payment processes, plugging revenue leaks or preventing fraud, your CPA can be an invaluable resource.

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