Practice Assessment

Control Your Profits and the Future of Your Business

Whether your practice is in great shape or experiencing significant financial or operational pain, our medical practice consultants, who specialize in medical and health care practice management, will examine every aspect of your practice and report the findings. You are then presented with a comprehensive review of those findings as well as recommendations for improvements.

The result is a clear understanding of how to increase practice profits, reduce stress for you and your staff and improve employee morale and patient satisfaction.

Every medical practice has its own unique challenges and your assessment may include but is not limited to, an in-depth review of:
  • Operations
  • Financials
  • Business Structure
  • Benchmark Analysis
  • Compliance
  • Revenue Cycle
  • HR Management
  • Patient and Work Flow

What to do next…

Why do thousands of providers and practice managers turn to DoctorsManagement for help improving practice operations?

Focus – our consultants focus exclusively in healthcare and are backed by a team of in-house experts in virtually every aspect of medical practice management. You receive recommendations that can provide relief in the short-term and help position your practice for long-term growth.

Success – clients around the country trust Chapman-Verbeck to help them simplify the business of healthcare and control the future of their practices.

Synergy – as a full-service healthcare consultancy firm, the departments within our firm work together to help clients rise above the complexities that come with delivering healthcare in today’s market. As a result, you receive expert input from a team of individuals who are current on every aspect of the business of medicine.

Forecasting Cash Flow

Predicting and managing cash can be one of the most difficult things small businesses do.

If your company is growing, it’s extremely important; we all have seen many growing companies run out of cash due to growing accounts receivable and inventory.  And if your company is not making money, it’s obviously extremely important watching every dollar.  We need to make payroll and keep the business operating.

I like to put in place a couple of process tools that really help any business predict and manage their cash.

The first tool which is essential for most small businesses is to put in place the 13 Week Cash Flow worksheet.  This should be updated, reviewed and revised every week.

The worksheet is simple – it has weekly forecasts for cash receipts and cash disbursements.  The trick twofold:

  • Being able to predict the timing cash receipts
  • Having place holders for planned disbursements

Predicting Cash Receipts

In smaller companies, detail expected payments for all outstanding invoices.  In the most companies, however, due to the size of receivable aging, assumptions must be made based on current expected cash conversion.  Accounts receivable turnover is measured on a weekly basis and strategies are developed and implemented to make improvements.  Small improvements in accounts receivable turnover as a dramatic effect on cash flow. (For example, a $10,000,000 parts distributor with $1,500,000 in accounts receivable, decreasing accounts receivable on average of days 5 days, increases cash approximately $139,000.)

Disbursements

The worksheet needs to contain placeholders for everything.  Bi-weekly payroll, benefits, rent, debt payments, operating and admin expenses, A/P, inventory purchases, cap ex, debt and other payments.  No surprises.

Each week, review the prior week’s worksheet with actual receipts and disbursements and recast the next 13 weeks.

The process is straightforward and over time you get better at your predictions.  Forecasting cash flow in your business makes life much better.  Less stress, more predictability, ability to make commitments, etc.

Download the example of the 13 Week Cash Flow worksheet and put this process in place.