APMA News - January 2013 - (Page 48)

Small Business 101 From the American Academy of Podiatric Practice Management, the voice of practice management for the profession. By John Guiliana, DPM Simple Survival Tips for 2013 You may be a solo practitioner with one or two employees, or part of a podiatric super-group with 150 employees. In either case, you have to know how to keep your business alive during economic recessions and challenges. Any time the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a tight ship. Here are my tips for surviving and thriving in 2013: 1. Protect yourself from impulse expenditures. We’ve all bought merchandise or services we really didn’t need simply because we were in a buying mood, or perhaps in response to the flamboyance of the advertising or persuasiveness of the vendor. Then we “wake up” a few days later and find we’ve committed thousands of dollars of business funds for an item or service that’s not essential to the success of our business, while other more critical items might have been waiting for those dollars. If your practice is incorporated, you can eliminate these impulse purchases by including the following statement in your bylaws: “All purchasing decisions over [a certain amount] are contingent upon approval by the board of directors.” This statement will force you to consider any impulse purchases of considerable cost, and it may even serve as a reminder in the case of smaller purchases. If your business is a partnership, you can state, when faced with a buying decision, that all purchases are contingent upon the approval of a third party. In reality, the third party can simply be one of your partners. If your business is a sole proprietorship, commit to a “three-day rule.” Hold off for three days on purchasing an expensive item, giving you time to sleep on the decision. Then act to either purchase the item or commit to not needing it. 2. While you may think you cannot afford professional services, be sure that you don’t short-change yourself. Regardless of the cost involved, it always pays off in the long run to seek out the advice of experienced professionals. You might have to make a paradigm change in 2013. Should you hire a practice consultant? Should you join a super-group? Should you outsource your billing? Should you hire an associate? Vet these decisions with others’ help. And remember, in contrast to the point made above, if you need something, you pay for it whether you buy it or not! You either pay for needed products or services, or you suffer the lost revenue as a result of not having them. 3. If you don’t already do so, meet with your staff at least once a month. Discuss challenges, goals, visions, etc. Ideally, you already start each day with the “morning huddle” that I have 48 APMA News January 2013 described in past columns. It’s crucial that all departments of your practice communicate with each other. Know the day you are going to face before it even begins. 4. Recognize that most of your patients have the money to immediately pay at least some of what they owe you. To keep their accounts current, and the number of accounts receivable in your files to a minimum, you should develop written financial policies on how accounts receivable are going to be managed. Don’t be afraid to call patients and ask for some kind of explanation as to why they’re falling behind. If you develop such a habit as part of your operating procedure, you’ll find your invoices will magically be drawn to the top of their piles of bills to pay. While maintaining a courteous attitude, don’t be too forgiving when it comes to collecting money unless there are extenuating circumstances. 5. Get ready for ICD-10 and some turbulent waters. Establish a line of credit with your local bank. Consider having at least six months of capital reserves. Subscribe to Codingline (www. codingline.com) and the APMA Coding Resource Center (www. apmacodingrc.org). Watch APMA’s Weekly Focus digital newsletter for announcements about ICD-10 webinars, updates, and other resources available to help you prepare. 6. If you are given a membership certificate or wall plaque, you should display it conspicuously on your office wall. Patients like to see such “seals of approval” and feel additional confidence in your practice when they see them. Display certificates for your assistants, as well, such as those from the American Society of Podiatric Medical Assistants (www.aspma. org). Watch for a future certification program for office administrators offered through the American Academy of Podiatric Practice Management (AAPPM; www.aappm.org). 7. In order to survive in business, regardless of the economic climate, it is essential to surround yourself with smart people and practice sound business management at all times. Join APMA as well as AAPPM. 2013 promises to be another challenging year for medicine. You have the opportunity to prepare and thrive by changing your paradigm. Happy New Year! n Contact Dr. Guiliana at Jguiliana@aappm.org. http://www.codingline.com http://www.apmacodingrc.org http://www.codingline.com http://www.apmacodingrc.org http://www.aspma.org http://www.aspma.org http://www.aappm.org

Table of Contents for the Digital Edition of APMA News - January 2013

APMA News - January 2013
President’s Message
Contents
Dr. Wenstrup Goes to Washington
A Son’s Tribute to His Father, a 9/11 Hero
Podiatrists Golf for a Good Cause, Raise More than $500,000
CAC-PIAC Attendees Learn How Relationships Can Literally Pay Off
Creating the Future: A 2012 Retrospective on Advocacy by State Components
Profile in Progress: MPMA Gets It Done
Editorial: Understanding the Needs of the Current Generation of Learners
Find Out What’s New and Exciting for The National in 2013
Next Young Physicians’ Institute Slated for April
2012 Podiatric Practice Survey: Years in Practice and Board Certification Qualification by Primary Practice Arrangement Type
Annual Scientific Meeting Registration Form
Federal Advocacy Forum
APMAPAC Chair Report
IT Consultant
Website Wisdom
Small Business 101
CPME Update
In Short
Worthy of Note
Affiliates Corner
List of Affiliated Organizations
Insurance Advisor
Seeking Award Nominations
New Members
Death Notices
APMAPAC Update
Resolutions Deadlines
Annual Meeting Sponsors
Development Update
Classified Advertising
Dates to Remember
Advertising Index
10 Questions
Your APMA

APMA News - January 2013