Financial Challenges Confronting Physicians
If you are wrestling with any of the following questions and more, please reach us at mferkovic@physiciancfo.solutions or call 440-781-4659 to schedule a discussion.
- Do you have a written set of financial processes or accounting procedures?
- Does you practice have 3-5 Key Performance Indicators (KPIs) which are managed on at least a monthly-basis? Do these KPIs align with your mission, vision, and strategy?
- Are your billing data, financials, taxes, and other KPI-related reports received on timely-basis? Is there enough time from receipt of these reports until the end of the next period to implement improvement plans?
- Does your practice budget for the next fiscal year or on a rolling basis?
- What are your capital expenditure needs for the next 5 years?
- Have you analyzed your revenue (and gross profit) and accounts receivable by provider, location, payor mix, and service mix?
- Is payroll analyzed by headcount, job or title, gross pay, and benefits?
- Is overhead reviewed periodically to identify potential savings or additional expenditures?
- Have key vendors been analyzed recently? When were payment terms last negotiated? If a vendor were to no longer serve you (due to bankruptcy, supply chain issues, or other), who would replace them and how quickly?
- Does your lease reflect fair market value (FMV)? Has a real estate broker provided a supporting FMV report? Do you have a list of potential buyers?
- Do you have a banker? When was the last time he or she met with you to analyze treasury needs? Potential financing opportunities (including lines of credit)? Other services which might align with your strategy?
- Have you or an advisor performed a valuation within the last year? Has the valuation differentiated between buyer-type (partner/physician buy-sell, private equity, hospital, joint venture, or other)?
- If approached by a potential buyer, have you articulated the top 3-5 goals for a transaction?
- What is your recruiting strategy for providers and staff? Do you have a successor? Do your provider contracts reflect fair market value? Have you engaged a firm to support the FMV of these provider contracts?
- How much time are you spending on administrative duties per week? Do you enjoy them?
- Who are your advisors and practice managers? Who is coordinating between all of them?
