1. Meeting increasing business expenses. The business of running an orthopedic practice has changed significantly over the past few years as reimbursements decrease and expenses increase. Orthopedic physicians will be expected to use electronic medical records, and the implementation of this technology creates initial inefficiencies, even if it promotes efficiency in the future, according to the report. Additional pressure to form or join an accountable care organization that takes years to recognize a profit may also be treacherous for small-group surgeons.
Dr. Berry reports his small physician group spent more than $120,000 on EMRs and claims submissions over the past few years, expenses that they may not recover.
2. Remaining knowledgeable about the value of services. Small orthopedic groups must defend the value of their services to the community, which is difficult without knowledge about the fair market value of these services, according to the report. If practice administrators don’t know the fair market value of their services, they may enter into unfair contracts. Dr. Berry’s group hired a senior billing supervisor to analyze different rates within practice contracts and compare them with the contract rates of other practices in their community.
3. Identifying problems. Analyze practice processes regularly on a small level to find inefficiencies in the every-day routine. While large groups can benchmark their data against others, small practices must develop other methods of communicating performance data. Conducting regular audits and correcting inefficiencies can save your practice money, according to the report.
4. Compensation for retiring surgeons. As orthopedic surgeons near the end of their careers, they often decrease their patient volume, and practices must be able to compensate for the loss, according to the report. Make sure other physicians are able to maintain high patient volume and have a process in place for recruiting new physicians.
5. Working together for a better future. Sharing economic information will be important for sustaining small orthopedic practices in the future, according to the report. Know the reimbursement data for your practice and share it with others to make smart decisions and conduct a successful business.
Read the report about struggling orthopedic practices.
Related Articles on Orthopedic Practice Management:
Managing the Revenue Cycle: 10 Areas of Improvement for Orthopedic Practices
4 Ways to Keep Orthopedic Practices Fresh
5 Points on Ultrasound for Orthopedic Surgeons
