Cashflows is the one of the most important things that helps sustain a business. However, it is not easy to manage the cashflow and has been a major issue in all types of businesses including the medical practice.

Poor planning, poor quality of financial information, too much overheads and debt are the some of the factors that often led to cashflow problems. And, due to the constant economic stress, doctors are involved in more diversified practices for improving their cashflows today.

Here are several ways that can help doctor improve and manage their cashflows.

1. Get all the latest things required for coding and filing claims to maintain a positive cash flow. Also, check your expenses so that it is do not go overboard.
2. Do not pay your suppliers and vendors till you reach the due dates. In case if it is essential, leave the due date with the vendor’s agreement.
3. Have a clear payment policy that provides things to consider by the patients. After understanding the policy, get them signed off before the treatment.
4. Before hitting the last two years of contract, renegotiate lease terms on both rent and equipment. That’s because your landlords will provide you lower lease rate to keep you as his client than to lose you.
5. Use the help of medical reimbursement specialists for the accurate preparation of medical claims to insurance companies. They have the expertise to deal with such companies and also help you understand about reimbursement and cashflows.
6. Do timely patients follow ups to ensure collection of all the accounts receivable. For a speedy payment collection, you can also consider giving out discount for cash payments made before the due date. Another great option is to request your patients to pay in cash if possible for your services.
7. For lowering the costs for expenses like property, casualty insurance, use the outside consultants working on a contingency basis.
8. To verify whether the deposits are still required or not, research your deposits paid over a year ago to utility companies.
9. Reschedule principal and interest on outstanding loans with banks and other creditors for the proper management of cash flows. You may also look at other alternative loan options to make up for shortage of cash.

A healthy cashflow is the key to run your medical practice successfully. So, you always need to plan ahead to ensure your financial position is stable enough to sustain your practice.

For the proper guidance on the cashflow management area of your medical practice, an expert medical accountant can be a very valuable source. Because of this, you should research and find a one that can solve your issues with a professional approach.