Michael Perusich: Hello, I'm Michael Perusich with Kats Consultants. Can you believe it, we're just a few days away from the fourth quarter of 2020. That means 2021 is just around the corner. While many of us are ready to end the roller coaster ride from this year, for chiropractors, aside from a few weeks, it's really been an awesome year in business. We believe it's going to continue into 2021 provided you do the right things and take the right steps now.
The first thing you need to do is analyze your insurance reimbursement to see how well or how bad your insurance contracts may be paying you. Watch for the reimbursement charts to be posted by the insurance companies for 2021. Medicare has already put out the reimbursement schedule, and unfortunately, the rates have really dropped.
Next, you need to look at your overhead. Where can you make cuts and project where your expenses may increase in the next year, then analyze your profit point. That's the comparison between your collection visit average, and your expenses per patient visit. This can be a scary realization as some of you may find that you're not making much money or worse yet, you're collecting less than your overhead. You want your profit per patient visit to be at least 20% in a comfortable range of creating a good working capital position.
These are the kinds of evaluations we help our clients with, and these are important for every practice to analyze if you want to be profitable and successful. I'm Michael Perusich with Kats Consultants. Thanks for listening.
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