3 Financial Accounting Tricks For Healthcare Companies

March 25, 2020

As healthcare grows nationally and internationally, the companies in the business need to manage their accounting and finances with ease. With the demand for nurses and specialists growing, as well as changes to regulations, staying in business is important for you and your patients. Accounting is the key

DeepSky wants to help all healthcare companies. Whether you are a clinic lab, home health agency, dialysis center or other facilities, we can apply basic accounting principles for specific practices. 

Tips For Healthcare Organizations

Track Your Cash Flow

Sometimes growth can lead to costs increasing higher than your revenue. This can run the risk of putting your finances in the red. At DeepSky, we maintain that when you run out of cash, it’s game over for your business. You end up bankrupt and “go broke,” to put it mildly. Profit, in this case, does not equal cash flow, and you need that cushion.  Healthcare Companies

While donors and sponsors can add cash and capital, that will keep you in the black but also is buying time to avoid the real problem. Determine what is causing the increase in costs as your company grows, and how best to avoid running out of cash entirely. Then you can figure out means to increase the cash in such a fashion. 

Calculate Turnover Regularly For Specialized Positions

If you hire specialists within your company, from doctors, nurses, therapists or paramedics, then you need to know how to retain the amount of viable talent. From a practical standpoint, you don’t want to have a staff shortage at a crucial time. 

Nurses, for example, have some of the highest turnover rates owing do the demanding work. The NSI estimates that the average turnover for nurses is s 17.1% within the United States, which is a relatively high rate. Meanwhile, the New Mexico Legislature has estimated this leads to $300,000 in the loss for hospitals. If your company hires nurses and other specialists that seem to leave often, do what you can to ensure that they stay. 

Implement Safeguards For Fraud

This may seem like common sense, since healthcare has many regulations and rules to penalize fraud, but it can also happen in accounting. DeepSky has talked about several instances where people who track books can identify red flags. 

One example would be asset misappropriation. This can refer to the theft of assets from an organization, loss of funds used to pay for assets the managers didn’t receive, use of office credit cards for personal expenses, and other forms. 

The best prevention is to assume that fraud can happen at any time. Even if you trust all of your employees, ensure that billing is accurate for patients and relevant government agencies. Assess if medical referrals are necessary for the patients in question. Have people double-check credit card statements and receipts, and track usage of medical equipment. 

Organize Your Financial Statements With DeepSky

DeepSky wants to help every company reach the next level by managing their finances. Our Financial Wingman™ program will guide you every step of the way to assist with cash flow. Contact us today to get started with our outsourced accounting services. We’ll organize your finances and help your revenue increase with viable strategies.

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