3 Ways to Improve Your Cash Flow #2
3 Ways to Improve Your Cash Flow: Step TWO
When do you think improving your cash flow matters?
Can you change it….
Overnight?
Next Quarter?
Next Year?
Whenever you decide it is time to improve the success of your business -- every little decision counts. Think of this invested time, energy and effort as putting intention into your future. Ask yourself: how does this decision affect the next 10 minutes of my life? 10 months? 10 years? It is never miniscule.
Reduce Expenses
Increase Revenue
Reimagine Your Business Offerings (to be Profitable from Day 1)
Strategy TWO: Increase Revenue
Step 1: Raise your prices
Step 2: Stop offering discounts.
Step 3: Improve Collections
I know what you are thinking… easy for you to say! Many of you will want to flip these suggestions around, and start with the “easiest” one. Holding you and your staff accountable. I could just make more money if those rejected insurance claims didn’t happen. I could just make more money if the patients paid their copays on time. If only my staff (or I) understood the insurance system better.
Yes, while these are all important points — and they are all within your control, they are not the fastest way to increase your revenue. Having systems and properly trained staff is vital to your success, no matter the business type. If you have a biller or a member of staff running double duty, make sure you are holding them accountable on a regular basis. I cannot stress this enough!
So back to my first thought: raise your prices. Have you ever done this? How many years has it been? Are you rolling your eyes right now because your insurance based practice “can’t” raise their prices? Well, these are all decisions you can make as a business owner. A decision of putting head in the sand is still a decision. Even if you are 99% insurance — you can raise your prices. We all have “cash” non/under insured patients. You all have fee schedules that you should review and edit on a yearly basis. You likely can add a cash-based service to your practice that is outside of the covered services that bound you to contract rates. If you have patients on “wellness” or “maintenance care” — how often does this price point move? Ever? Never? I’m a fan of $5/year. Every January. It is simple and to the point.
I can’t tell you how many times I’ve heard of a practitioner lamenting for months over the decision to raise prices by $5… and “nothing” happens. Nothing meaning the patients didn’t question it. No complaints. Some even said “its about time!” or “I always thought you should charge more!”
Will you lose patients?
Maybe. Maybe your every other week patient will want to stretch it to 3 weeks. That’s fine. That is their choice. You will be operating your business from a place of confidence rather than chasing down people for their money…
Which brings me to wrap it up with my #2 step — STOP offering discounts.
Set your prices and let it go. It takes so much time, energy and will power to try to figure out how to discount your care — rather than just setting your rate and accepting the patients (customers) who are willing to pay it. Yes, we are all experiencing the effects of inflation and all the crazy economical stuff related to the pandemic. Appearing desperate for business (by offering discounts and gimmicks) isn’t going to pay off in the long run.
Can you still offer something to a hardship case? Sure. That is up to you. But we have all been burned by that patient that is only out for a deal, whilst driving a brand new luxury car.
To put things into perspective… I typically reference trends and standards in the medical field. Is your MD running a new patient special? Is the dentist offering free exam & x-rays? Is the hospital discounting family care? No, no and no. And this isn’t a philosophical allopathic versus holistic care debate.
Serve your community to the upmost of your ability, ethically and you will seen the successes and benefits of being a business owner.
….until next time where we can REIMAGINE BUSINESS together!
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Schedule a FREE Discovery Call (click to access my schedule)!
If I help you pay yourself more this year, is it worth it?