Best Ways to Combat Recession for Medical Practices

In economic terms, recession-proofing describes assets, businesses, or industries that are economically resilient to recessions.

Several companies consider labor costs, capital expenditures, marketing, and research when attempting to reduce costs. Often, a recession has less of an impact on larger healthcare companies, and a drop in sales won't spell the end for those companies. Healthcare is an essential industry in a recession, but small practices are at a much greater risk. Often, a small practice is owned by a single individual, so a downturn in revenue directly affects their cash flow.

Here are the best ways to recession-proof your medical practice. 

1. Streamline Your Cash Flow

Having control over your cash flow means knowing how your finances are doing. It is a good recession strategy to look at your cash flow and see where your money is coming in and going out.

A good indicator of your financial health is how easy it is for your patients to pay their bills. Furthermore, by taking advantage of convenient payment methods like Google Pay, Apple Pay, and Text-to-Pay to automate payments, you create cost transparency for your patients and accelerate payments to your practice.

2. Analyze the Current Economic Climate

It's not the end of the world when the economy declines from time to time. Being prepared for the inevitable is the key to remaining resilient. If your medical practice is not performing at its peak, what principles should we implement to maintain profitability?

In the event of a recession, don't panic. Take care not to make rash decisions solely based on media statistics or numbers. Make sure you understand the economic climate before making any significant decisions. You should also remember that your competitors are experiencing the same decline. This is a time when decisions you make or don't make can make your healthcare practice stand out from the competition.

3. Never Start With the Most Expensive Area

During a recession, both businesses and consumers become more frugal. In healthcare, patients want their money to be spent in areas where they see a return on investment. Thus, consider which aspects of the patient experience add the most value and don't mix those costs.

Cutting corners to save money can damage your most valuable asset, your patients. Remember that your patients are crucial to your practice's recession strategy. Don't waste your money on unnecessary personal spendings such as premium seats on planes, unnecessary travel, costly meals, and frequent dining out.

4. Make a Positive Experience Worth Sharing

As the recession continues, your patients will become pickier about their expenses. Therefore, creating a positive patient experience is crucial to your recession strategy. Take advantage of automation and engagement tools like two-way texting and appointment reminders to impress your patients. Consider asking for positive feedback when you believe a patient had a positive experience. Provide patients with the means to leave reviews quickly and without wasting time.

5. Create an Indispensable Experience

In the end, your patients make your practice what it is. The more positive experiences you offer, the more likely they want to return. How important are you to your patients? Are they satisfied with their experience and service at your practice?

The most straightforward tactics, like remembering birthdays, using first names, asking about family, and smiling, can create an invaluable experience. Every patient may not have a positive patient experience, but remembering the small things can influence their experience.

6. Put Your Team First

Staffing uncertainty during a recession is the last thing you need. Thus, building a deeper connection with your team through fun work events and team-building exercises is crucial to recession-proofing your practice. Taking the time to ask for feedback will allow you to be open to what they say.

Staff members are on the front lines daily and often have insights into how your practice could be improved during a recession. Additionally, use tools to streamline communication and facilitate team collaboration.

Also, read Why to Invest in Employees Training in Recession Time?

7. Focus on the Big Picture

Markets always recover from economic declines. The more money your patients spend, the more sales you make, and the more revenue you have to invest in your practice. It is essential to keep this perspective in mind when making business decisions. Amid the recession and beyond, continue making entrepreneurial decisions to assist your business in growing.

Partner With DrCatalyst!

With DrCatalyst, your medical revenue cycle will be in good hands even during a recession.

With our Comprehensive Revenue Cycle Management service, you will receive the following benefits:

• Claims management
• Information management that is complete and correct
• Claims management
• Billing services that cover everything
• A dedicated group of medical billing experts 
• Reporting that is factual and analytical for your practice.

If you are interested in learning more about how we can help your medical practice, you can contact us by clicking on the highlighted link and we will set up a free demo for you.

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