Are you finding it difficult to stay ahead of the mountain of reports, e-mails, meetings, phone calls and various daily crisis interventions? The list of demands on our time is endless and although most managers recognize the value of networking, rarely do we add it to our "To Do" List. So, why not grab a cup of coffee and give yourself ten minutes to read what some of your peers are thinking about important, current issues that affect us all. This quarter, we asked CFMGMA members to share their thoughts about the impact of the current economy and healthcare reform on their practices.  

 

Several administrators commented that they are aware of greater stress levels in their employees based on the uncertainty in the economy. Anne Wagoner, executive director of Central Florida Hospitalist Partners, commented, "The changes are causing great concern. There is a horrible lack of clarity as, unfortunately, it appears healthcare has become the current, popular political 'toy.' As with any business, we need to have accurate and reliable financial forecasting to help create and implement our strategic plans." Reductions in staffing were the most commonly cited stressor mentioned by administrators.

 

Anne's point about strategic planning is echoed by several other administrators. Certainly in all practices, staffing and employee benefits are areas being closely examined to control overhead expense. Several practices reported measures focused on controlling staffing costs such as eliminating or reducing overtime hours, and reducing numbers of staff. Lynn O'Leary, practice administrator/CFO of Florida Center for Orthopaedics, explained that her practice has also instituted a one day per month furlough for non-providers and has reduced their CME reimbursement. One practice reported that they closed a satellite office. Employee benefits are also prime areas for reduction of overhead. Patricia Johnson, practice administrator of Family Medical Center, says that her practice has revised their healthcare coverage, implementing a deductible for the first time.

 

Family Medical Center is also implementing measures that are designed to have long-term impact on practice expense. According to Ms. Johnson, "We will soon be replacing our practice management system with a new state of the art integrated EMR, and we expect that to eventually add efficiency to the practice and will also let us reduce staffing costs."

 

Vendor agreements are another area that is being aggressively targeted by some practices. Measures ranging from re-negotiating contracts with existing vendors to changing vendors were reported to produce significant savings. Leasing as opposed to purchasing capital equipment was suggested as an effective method of controlling current costs.

 

However, controlling costs is really only half of the picture. Several practices are implementing measures to improve their revenue stream. Patti Fitzgerald, practice administrator at Sand Lake Dermatology, reported that her practice has closely examined their payor mix and are actively working to improve their cash flow by offering preferential scheduling for self-pay patients. Jennifer Silverman of Lake Howell Family Practice says that her practice is making an extra effort to ensure that some of the "basics" aren't being overlooked. "We are making sure that fewer mistakes are made in billing and coding. We are also trying to keep our accounts receivable from getting out of hand by reminding patients if they have a balance."

 

There clearly are no simple solutions to the complex financial challenges currently facing medical practices today. Regardless of the extent to which each of us is responsible for the financial success of our individual practices, it is a daunting task. Networking with over one hundred of your peers in the Central Florida Medical Group Management Association is one of the best resources available for solving the many challenges you face professionally. Why not join us for our next meeting which will be held on August 11, 2010? Please visit our website at www.cfmgma.com for complete meeting information and directions to the Sorosis Club.