By Stacy M. Menz, PT, DPT, PCS
Money matters. Depending on how you read it, your perspective on your current situation, it could mean money does matter, or it could mean matters regarding money. The reality is they both go hand in hand. I know many of us didn’t get into private practice thinking we were going to rake in the cash and retire early. We do what we do because we care about our patients and their lives, the health of the U.S. population, the development of kids, and on and on and on. But the reality is that money does matter, and you need to pay attention to matters regarding money to be able to serve the community and people that surround you and your practice.
February was all about benchmarking and what data you should track to have a meaningful impact on your business. By tracking this data, you should also be in the position to make decisions that affect your financial picture. Believe me, you don’t want to just forget about your finances. The sooner you start tracking them and paying attention to balance sheets and profit and loss statements, the better off your business will be. Just as you pay attention to the health of your patients, you need to pay attention to the financial health of your company. Otherwise, as much as your employees may like you, they aren’t going to be too happy if you have to postpone payroll or cut their benefits.
It is no secret that there is uncertainty in health care right now. We are all waiting to see what happens with the new value-based evaluation and reevaluation codes, as well as what happens with Obamacare (Affordable Care Act) and other variables with a new administration. All of these issues can impact the finances of your company and by paying attention before the change happens you can hopefully be ready for it. Do you have a rainy day fund set aside? Do you have a line of credit with your bank? What other financial safeguards can you put in place should your practice require support?
By making sure you pay attention to the finances of the practice, and know what your financial matters are aligned with, you can be sure that you know Money Matters! This allows you to focus on the important part of why you do what you do—getting people healthy!