Assessing the Recession – How Has It Affected Your Practice?

With the current economic downturn, have you taken the necessary steps to ensure continued financial stability? In an informative article by Pamela Moore appearing in the May 2009 issue of Physicians Practice she outlines a number of metrics to help assess how you are faring.

With the economic uncertainty looming and continued increases in layoffs and joblessness in many areas patient’s heath care choices have shifted. It is likely that the mix of patients you are seeing and the types of treatments have shifted over the last year. The author suggests the traditional assessment of Q1 this year versus Q1 last year analysis are still just as valid, however it may make sense to dig deeper to look at month over month performance and see at the micro level what may be happening. By doing so you may prevent yourself from looking back 60-90 days from now and asking yourself, “What happened?”

Some suggested areas to investigate:

  • What is the percentage change in the total number of patients seen in your practice?
    Review the overall total numbers but also look at the mix of patients you are seeing as well. How many new patients are coming in versus how many are existing patients? How has the mix changed over last year?
  • Has your payer mix changed?
    If you are like the majority of physicians we work with you are as busy as ever, but have the patients changed carriers to lower paying payers? Be aware of the shift and you can plan changes to the practice accordingly.
  • Has your patient accounts receivable changed?
    Chances are that with the downturn in economy you are seeing a rise in your accounts receivable. The numbers of citizens who are lacking insurance or simply don’t have the funds to pay bills are increasing. Assess where you are , take necessary action and pay attention to what it means toward your long term stability.
  • What’s happening in your market?
    Visit the Bureau of Labor Statistics to get the pulse of what is happening in your area? (www.bls.gov/lau) With layoffs and changes in employment you may not yet be feeling the effects, but they could be just around the corner.

The author’s bottom line: “Now is not the time to be driven by unanalyzed fears or groundless optimism. Be responsible for understanding your own economic forecast.”

To read original article, click here.

 

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