1. Forecast Your Cash Flow
Every business should have a cash flow forecast and keep close tabs on it during this time. By maintaining a forecast you’ll have a clear view of when money is coming in, when it’s due out, and what’s left over. This will help you make crucial decisions about our finances during the holiday season and all year long. Plus, if you have an accurate cash flow forecast going into the holidays, you’ll have an easier time managing your cash flow during the holidays—helping you survive the slow period. Check out these tips for putting together a cash flow forecast and analyzing it.
2. “Run the Cards!”
Cash flow issues are problematic on their own right. But it gets even more frustrating if your cash flow fluctuations are mostly caused by late-paying customers.
That’s why I recommend a “Credit Card on File System” for every healthcare practice.
Every year a patient fills out a form with updated credit card/debit card info. Patients agree to help reduce costs and collections to leave their card on file for use with denied claims, deductibles, and co-insurance. The form allows to charge up to a certain amount and at the point of EOB arrival.
The form allows to charge up to a certain amount ($250 in my old office) at the point of EOB arrival.
We also utilized a system within our credit card processor Chosen Payments to make things PCI compliant and easier for staff to manage. Plus their rates are freaking awesome.
During holidays and vacations I typically have my staff do an audit of:
- Expired Card Phone Calls
- 120, 90, and 60 day past due guarantor
- 120, 90, and 60 day past due insurance
3. Run Specials/Event Invites
During vacation and holidays I would also have my staff do
- Enhanced re-care calls with special incentives
- Run online specials
- Personal reach out for upcoming events
This allowed us to come back from break with extra cash flow.
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4. Put a little extra away each month.
Don’t put it off until closer to the time. Start putting some money away as soon as possible.
5. Consider new revenue streams
The team at Free Agent Suggests
Take this opportunity to think of alternative ways to make money with your skills.
Could you teach students or other docs in your industry with tutorial videos or a paid masterclass?
Ship that side project you’ve been working on and get it out there to make you some passive income.
How about consulting?
Planning a long break or hoilday can be a nerve-wracking experience, but following these steps and facing the real numbers can help reduce the stress. Overestimate how much money you’ll need, build in buffers, communicate early and honestly with your patints and most importantly, enjoy your break.