How To Maximize The Sustainability of Your Healthcare Business
Healthcare is profitable, and as a result there are many financial “predators” lying in wait to siphon the gains your healthcare business has been able to achieve. From insurance to lawyers to situations involving a given payor to lawsuits and situations involving supposed malpractice, there’s a lot to consider. You need professional assistance.
Here we’ll briefly go over one particular issue you might want to think about as you establish and create a successful business. The experts can more than pay for the cost of their expertise in diverted losses or recouped gains. Situations involving payor intrigue were mentioned earlier, let’s look at that specifically to help give you an idea why you want to work with consultants.
Payor Contracting Can Be Impactful
One area where healthcare consulting experts can really save you a lot of time, a lot of energy, and perhaps even make it possible for your business to exist over the long-term is as regards healthcare payor contracting. Essentially, your healthcare business will have to accept some form of insurance payout in order to remain viable over the long-term.
The thing is, whatever contracts you sign will include sneaky provisions wherein contracts are only binding in certain ways and timeframes which are often less comprehensive in reference to a given institution regarding patient service costs. So say a patient comes in and racks up $20k in medical expenses.
That patient covers $1k of them owing to their insurance arrangement, and the insurance ostensibly company covers the rest. However, the time they have to pay that additional $19k depends on the contract they have with your medical institution, and what they cover. You can bet that the insurance company is going to push back on fair payout as much as they can.
So What Do You do?
When you’re just dealing with one company, you can structure your operations to match whatever shenanigans they lean into so you can keep from being undermined.
When you’re juggling dozens of them, and they’re all trying to legally delay payment based on contracts, and even renegotiate them at the end of a given term, things get complicated. Consultants help you assure associated contracts “keep them honest”, as it were. Essentially, they help you assure the contract of a given payor doesn’t grant them too much flexibility.
What they’ll usually do is wait until the time is right and renegotiate their arrangement with you owing to some aspect of the contract written precisely to go “under the radar”, as it were. You don’t realize that they’ve designed their agreement with you so that it looks benign, but in the end grants them the legal ability to suspend payment as long as they can.
So you get all this work done, and you’re waiting for an unreasonable amount of time to get paid. Ultimately, your healthcare business ends up defaulting on a loan or two, and soon it becomes financially inoperable, even though you’ve technically done nothing wrong. That’s the issue to watch out for, and consultants help you avoid it.
Facilitating More Reliable Healthcare Operations Overall
Beyond getting the right equipment, and securing staff who are qualitatively skilled in the particular niche of your healthcare business, you need to assure all associated payor contracts favor your operation.
To that end, work with consultants who understand what the issues are, and which measures to take so you can avoid being undermined. Sometimes you may not want to work with one payor or another. Consultants let you know where contract “land mines” hide.