How Medical Practices Can Maintain Steady Revenue in an Uncertain Economy

Many medical practices are struggling with rising costs, delayed payments, and fluctuating patient visits. According to MGMA, 60% of healthcare leaders reported […]

March 13, 2025
Uncategorized
3 min read

Many medical practices are struggling with rising costs, delayed payments, and fluctuating patient visits. According to MGMA, 60% of healthcare leaders reported revenue declines in 2024.

The good news? Your practice can stay financially stable by making key changes to your billing and operations. Here’s how.

1. Improve Revenue Cycle Management (RCM)

Billing delays hurt cash flow. RevCycle Intelligence reports that 15% of revenue is lost due to claim denials and billing issues.

Here’s how to improve collections:

  • Submit claims faster to avoid payment delays.
  • Use automated billing tools to catch errors before claims go out.
  • Appeal denied claims quickly—90% of them can be overturned (HFMA Report, 2024).
  • Verify insurance coverage before visits—this prevents 30% of denials.

🔹 Why it matters: Faster billing = faster payments & fewer lost claims.

2. Offer More Revenue Streams

Relying only on insurance payments is risky. Kaufman Hall found that practices with multiple income sources are 18% more stable financially.

Ways to boost income:

  • Offer telehealth—virtual visits grew 64% in 2023, but many practices still underuse them.
  • Start a membership plan—direct-pay models give predictable monthly income.
  • Add new services—wellness programs, remote monitoring, or in-house diagnostics attract more patients.

🔹 Why it matters: Expanding services creates steady revenue, even when patient visits dip.

3. Collect More Patient Payments

Patients are paying more out-of-pocket than ever before. The AMA reports a 10% rise in patient costs yearly. If you’re not collecting efficiently, your practice is losing money.

How to improve:

  • Collect payments upfront—practices that do this see 85% fewer unpaid bills.
  • Offer payment plans—57% of patients are more likely to pay if given options.
  • Use text/email reminders—automated alerts reduce late payments by 30% (Becker’s Healthcare).

🔹 Why it matters: Clear payment policies boost cash flow and reduce bad debt.

4. Use Technology to Cut Costs & Work Smarter

Automation reduces admin costs by 40% (McKinsey & Company, 2024).

Smart tech solutions:

  • AI-powered billing—catches coding mistakes before claims go out.
  • Automated insurance checks—ensures coverage is active before visits.
  • Patient self-service portals—let patients book, pay, and check records online.

🔹 Why it matters: Less paperwork, fewer errors, and faster payments.

5. Get Better Payer Contracts

If you haven’t renegotiated contracts lately, you’re likely getting paid less than you should be. MGMA found that 65% of practices haven’t updated contracts in over three years.

How to negotiate better rates:

  • Review contracts annually to check for fair payments.
  • Challenge underpayments—insurers sometimes pay less than they should.
  • Use real data—show insurers why your rates should be higher.

🔹 Why it matters: Better contracts = higher reimbursements without more work.

6. Reduce Claim Denials

Denials are up 23% this year (HFMA, 2024). If you don’t fix the cause, you’re losing thousands in unpaid claims.

How to reduce denials:

  • Track and fix common errors—prevents repeated mistakes.
  • Appeal quickly—most payers allow only 30-90 days to fight denials.
  • Train staff—90% of denials happen due to coding mistakes.

🔹 Why it matters: Fewer denials mean more revenue without extra work.

7. Invest in Your Team

A well-trained team keeps your practice running smoothly. According to Harvard Business Review, strong employee engagement lowers staff turnover by 32%.

How to build a better team:

  • Offer RCM training—your billing team should stay updated on best practices.
  • Cross-train staff—so they can step into different roles when needed.
  • Create a positive work culture—employees who feel valued work harder.

🔹 Why it matters: A strong team = fewer mistakes and better patient service.

Final Thoughts: Smart Practices Stay Profitable

Tough economies don’t have to mean financial instability. With the right strategies, your practice can stay profitable—even when patient visits slow down.

At Alico Healthcare, we specialize in maximizing revenue, reducing denials, and making billing more efficient.

📞 Want to improve your revenue cycle? Contact us today to learn how we can help.

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