The Pickle Option and Other Ways to Save

The Pickle Option. A member of my family owns a chain of delis. After assessing ways to reduce costs, he decided to make the pickle that accompanied every sandwich an option. That decision alone saved him $100,000 a year. And, the customers who didn’t like pickles were happy because the pickle juice didn't soak into their sandwich. So what do pickles have to do with medical supplies?

Messy drawers. Several years ago I performed an assessment on an underperforming facility. As I walked around, I opened supply drawers and found every drawer stuffed to the brim. Just by reorganizing their supplies, setting a par and creating a real ordering system, they could reduce their budget by thousands of dollars a year. Not to mention that fact that supplies would be where they needed them when they needed them. Simple changes like making pickles optional or organizing supplies can have a big impact.

Our Northern Neighbors. A Canadian physician shared a great secret with me. Canadian physicians bill less, but collect more. In fact, they collect approximately 99% of what is billed. According to my sources, American physicians are only collecting approximately 60-70% of their revenue. How do they do it? Are Canadians better at collections? Granted Canadian physicians only have one payer to deal with - the government. My point is that they bill less but actually earn more because they fully collect their accounts. How much of the revenue billed by your organization is collected? Do you require patients to pay at time of service?

Insurer Websites. Here’s another simple change that can reap savings. Evaluate the websites of insurers you deal with most. Many insurers enable providers to verify benefits, verify receipt of claim or check payment status of a claim online. It may not eliminate staff calls to insurers, but it could reduce them substantially. Utilizing “live” information can lead to increased productivity. Then you can reevaluate the number of accounts your staff can work in a day. If your staff could or would access the information online, what would be the savings to your organization?

Outpatient providers continue to lobby for parity with hospital providers, which ultimately mean higher rates. That’s one way to increase the bottom line, but there many steps you can take to increase your bottom line. Look for untapped savings. And remember, if you really want the pickle, you can always order it.

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