THE BALANCING ACT:
Shoring Up Overhead Costs While Driving Revenue
How do medical practices make the decisions for managing rising operational costs? The ideal approach is to focus on increasing revenue at the same time as cutting costs, where possible.
Reduce Practice Expenses
Overhead costs can now range from 60% to 70% of revenue depending on the region and state in which you operate. That's a percentage of revenue that doesn't go into your pocket.
What are the cost-cutting opportunities and when does it make sense to invest more? Identifying cost-cutting opportunities depends to a large extent on the type of practice you have and the region of the country in which you operate.
In The Balancing Act guide, we looked at these top 3 cost drivers in most independent medical practices to help create a plan of action:
- Support staff salaries and benefits
- Building and occupancy
- Supplies and lab services fees
