Business Archives - Page 26 of 46 - Whalen & Company, CPAs

The importance of collecting and analyzing patient data

Jacob Courtright on July 5, 2023

In today’s healthcare landscape, data is king. Data is crucial to keeping track of the business aspects of practice and plays a role in improved patient care. By collecting and analyzing data, healthcare providers can gain valuable insights into their practices, improve patient care, and make better decisions about resource allocation.

Here are three reasons why collecting and analyzing patient data is essential:

Improved patient care: By collecting and analyzing patient data, healthcare providers can identify trends and patterns in offering care at their offices. Auditing treatment plans improve patient care plans and ensure patients receive the proper treatment.Audits can assist providers in identifying diagnosis and treatment coding errors. Audits may reveal codes that insurance payers routinely refuse. It is common for providers to diagnose and plan treatments essential to the patient’s well-being; however, patients may inquire about insurance coverage and find they will have to pay for the proposed treatment themselves. This discovery may cause patients to avoid necessary treatment. Data analysis will uncover these discrepancies and help practitioners develop communication skills targeted at counseling patients.
Better decision-making: By analyzing data, healthcare providers can make better decisions about resource allocation and identify areas where resources are needed most. It is not uncommon for technology to advance in medicine. Changes in technology can drive changes in personnel and materials. Watching for opportunities to utilize technology to assist in patient care will assist providers in prioritizing cash allocations in the office. In dentistry, for example, scanners have changed how providers take impressions, which changes the need for impression materials, shipping costs, personnel use, and turn-around time for lab work. Many offices realized cost savings when scanners were purchased. Additionally, providers can run audits on specific codes to determine that fees align with service costs and make appropriate changes.
Increased efficiency: By collecting and analyzing patient data, healthcare providers can streamline their operations and increase efficiency. This information can identify faulty processes and help eliminate waste. Reduced waste helps improve the entire healthcare system.

The importance of collecting and analyzing patient data is evident. By using data to improve patient care, make better decisions, and reduce costs, healthcare providers can improve the overall health of their patients and introduce oversight in the healthcare system by managing their offices more efficiently.

Collecting and analyzing patient data is a powerful tool that can improve healthcare. By using data wisely, healthcare providers can make a real difference in the lives of their patients.

Best practices for managing patient appointments and scheduling

Jacob Courtright on June 30, 2023

Patient appointment scheduling is an essential part of any healthcare practice. It can be a daunting task, but it is crucial to get it right.

Here are five best practices for managing patient appointments and scheduling:

Use patient scheduling software: Patient scheduling software can help you automate the scheduling process. Software products that let people choose from available time slots can help relieve the stress of finding appointment times. These products give the front staff time to think about appointment requests in terms of the overall schedule and ask providers about the appointment timing if there are scheduling conflicts. Self-serve scheduling helps patients feel like they have some autonomy about the appointment instead of feeling pushed into a time slot that is not best for their schedules.
Set clear appointment policies: Ensure your patients know what to expect when they schedule an appointment. Be sure any communication includes the types of appointments you offer, the length, and the cancellation policy. Providers should enforce strict policies that prevent front staff from providing medical advice or quoting fees. Take time to work out wording that redirects the patient to what they can expect, the excellent service they will receive, and the benefits of being a patient at the office.
Be flexible: Sometimes, patients need to reschedule their appointments. Be flexible and work with your patients to find a time that works for them. With this in mind, remember that broken appointments are costly, and the front staff should strategically schedule and look for ways to fill gaps created by no-shows. One creative solution for redeeming broken appointments is to offer patients already in for treatment some additional time to finish other treatments without rescheduling. If a patient is already numb in one quadrant, they may appreciate the doctor being willing to restore a tooth next door if extra time is available. Also, keep a list of people who are able and willing to come for treatment on short notice. Many retirees are flexible, and some patients who live close to the office or work from home may be able to fill in gaps quickly.
Communicate with patients: Keep your patients informed about their appointments. Send them reminders and confirm their appointments.
Track your appointment data: Track your appointment data to see how well your scheduling works. Tracking data will help you to identify areas where you can improve.

Following these best practices can improve your patient appointment scheduling and provide a better patient experience.

The benefits of having a well-trained front office team

Jacob Courtright on June 29, 2023

The front office team is the first point of contact for your customers. They are responsible for making a good first impression, providing excellent customer service, and resolving issues. A well-trained front office team can make a big difference in the success of your business.

Here are some of the benefits of having a well-trained front-office team:

Increased customer satisfaction: A well-trained front office team can provide excellent customer service. They can answer questions, resolve issues, and ensure customers are satisfied with their experience. Most importantly, the front office team is a part of the patient triage because they help patients discern the type of appointment they need and what services will likely be part of the treatment. It is essential to set office guidelines regarding the questions to ask patients when they call in so that the clinical team can have the best information available to them to improve treatment.
Increased case acceptance: A well-trained front office team can help to improve treatment plan acceptance. Team members should be trained to help patients understand the flow of treatment, it’s timing, and costs and should be able to answer questions about expected outcomes. The front office staff is often instrumental in helping patients become more comfortable with their proposed treatment plans by perceiving hesitancies and involving the clinical team to answer lingering doubts.
Improved efficiency: A well-trained front office team can help to improve efficiency. They will be able to handle customer inquiries and requests quickly and efficiently, freeing up your time to focus on other tasks.
Reduced costs: A well-trained front office team can help to reduce costs. They can prevent insurance coding mistakes, identify patient data errors, and address payment issues. These services are critical to the health of any practice.

If you want to improve the success of your business, it is vital to invest in training your front office team. Many resources are available to help you prepare your team, such as online courses, books, and seminars. By investing in training, you can ensure your front office team is ready to provide excellent customer service and help you achieve your business goals.

Here are some tips for training your front office team:

Start with the basics: Make sure that your team members understand the basics of customer service, such as how to greet customers, how to answer questions, and how to resolve issues. The team leader, often the office manager, should be able to implement the provider’s vision for the practice. These leaders should have some input into decision-making regarding office policy. They should dedicate themselves to overseeing that the team performs collaboratively to meet the stated goals of the office.
Provide ongoing training: Don’t just train your team once and then neglect further training. Provide ongoing training so your team members can stay up-to-date on the latest customer service techniques. Ensure that the training program extends to all new hires and that the seasoned personnel are up-to-date on all office policies or procedural changes.
Set clear expectations: Ensure your team members know your expectations. Set clear goals and expectations for customer service, and provide feedback so your team members can improve their performance. Remember, to be unclear is to be unkind. Many people are anxious to perform well in their roles. Stated expectations are the standards by which performance is judged, so clear communication of the expectations can improve employee job satisfaction.
Reward good performance: When your team members do a good job, reward them. Approval will help to motivate them to continue providing excellent customer service in the future. A reward does not always have to take a monetary form. All people enjoy hearing they are valued team members. Recognizing a job well done will help with employee compliance and satisfaction.

By following these tips, you can train your front office team to be their best. A well-trained front office team can make a big difference in your business’s success and your enjoyment of your practice. Contact Us to get more tips.

Why some small businesses are switching to tax-basis reporting

Jacob Courtright on June 26, 2023

Accrual-basis financial statements are considered by many to be the gold standard in financial reporting. But with the increasing cost and complexity of today’s accounting rules — in particular, the updated lease guidance that went into effect last year — some private companies are seeking a simpler alternative to U.S. Generally Accepted Accounting Principles (GAAP). The solution for some is to switch from accrual to income tax-basis reporting.

What’s causing the shift?

The Financial Accounting Standards Board has issued several major accounting rule changes over the last decade, including updated guidance on revenue recognition and credit losses. But the most onerous for private companies has generally been the updated guidance under Accounting Standards Codification Topic 842, Leases. Although the updated standard was published in 2016, it finally took effect on January 1, 2022, for calendar-year private companies — after being amended and deferred several times.

Many privately held companies failed to understand the scope of the changes until recently. And it requires far more work than most anticipated.
To alleviate the burdens of complying with the new rules, some private companies are now opting to use a special reporting framework, the most common of which is tax-basis reporting. This is popular among small businesses because they can use the same methods and principles as they do to file their federal income tax returns.

What’s the difference?

Under accrual-basis accounting, revenue is recognized when earned (regardless of when it’s received), and expenses are recognized when incurred (not necessarily when they’re paid). This methodology matches revenue to the corresponding expenses in the proper period. So it minimizes fluctuations in profit margins over time and facilitates comparisons with other companies.

Under tax-basis accounting, transactions are recorded when they relate to tax. Essentially, you have one set of accounting records for both book and tax purposes. Historically, tax-basis reporting was used by companies that didn’t have complex financial affairs and didn’t need up-to-date information about their financial situations. Often these companies transitioned to accrual accounting as they grew and developed more sophisticated financial reporting needs. The pendulum is shifting away from accrual-basis reporting as companies become fed up with implementing major updates under GAAP.

However, there’s a risk to switching accounting methods: An unexpected change could upset investors and lenders, who generally prefer accrual-basis statements. GAAP is designed to prevent companies from overstating profits and asset values. By contrast, the tax rules are designed to maximize tax revenue for the government, so they generally prevent companies from understating profits and asset values.

What’s right for your business?

Choosing the right accounting method for your business depends on your financial needs and accounting skills. Some businesses use a hybrid approach, incorporating elements from two or more methods. The method you’ve used in the past may not be appropriate for your current situation. Contact us to help you find the optimal approach.

Why can’t my profitable business pay its bills?

Jacob Courtright on June 19, 2023

If your profitable business has trouble making ends meet, it’s not alone. Many business owners mistakenly equate profits with cash flow, leading to shortfalls in the checking account. The truth is that there are many reasons these numbers might differ.

Fluctuations in working capital

Profits (or pretax earnings) are closely related to taxable income. Reported at the bottom of your company’s income statement, they’re essentially the result of revenue earned minus operating expenses incurred in the accounting period. Under U.S. Generally Accepted Accounting Principles (GAAP), companies must “match” costs and expenses to the period in which the related revenue is earned. It doesn’t necessarily matter when you pay for a product or service.

So, inventory items that are in progress or are completed but haven’t yet been sold can’t be deducted — even if they’ve been long paid for (or financed). The cost hits your income statement only when an item is sold or used. Your inventory account contains many cash outflows that are waiting to be expensed.

Other working capital accounts — such as receivables, accrued expenses, and payables — also represent a difference between the timing of cash outflows and the matching of expenses to sales. As businesses grow and prepare for increasing future sales, they need to invest more in working capital, which temporarily depletes cash.

Capital expenditures and financing transactions

Working capital tells only part of the story, however. Your income statement also includes depreciation and amortization, which are noncash expenses. And it excludes capital expenditures and financing, which both affect your cash on hand.

To illustrate, suppose your company purchased a new piece of equipment in 2022. Expanded bonus depreciation and Section 179 allowances permitted your company to immediately deduct the purchase price of the equipment, which lowered its taxable income for 2022. After making a modest down payment, the remaining amount of the purchase was financed with debt, so actual cash outflows from the investment were minimal in 2022. Throughout 2023, your company has been making loan payments, and the principal repayment portion of these payments reduced the company’s checking account balance but not its profits.

Capital contributions, dividends and stock repurchases

You also can link discrepancies between profits and cash flow to owners’ equity accounts. For example, owners might pay out dividends based on their personal financial needs, regardless of whether the business is profitable.

Dividends (or distributions) paid to owners lower cash on hand, but they have no effect on the profits reported on the company’s income statement. Likewise, additional capital contributions and stock repurchases will hit the company’s checking account without affecting profits.

Efficient cash flow management

It’s important for business owners to understand the key differences between profits and cash flow. Some growing, profitable companies will experience cash shortages. And some mature “cash cows” will have ample cash on hand, despite lackluster revenue growth. If your business is facing a cash crunch, contact us for help devising strategies to improve cash flow. We can help your business pay its bills on time and find resources to seize value-building opportunities.

Category: Business

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