Both the political and economic global landscape has been extremely turbulent and unstable lately. As a result, it’s anticipated by many that either the economy will slow down or there will be another recession, neither of which sounds ideal. However, it’s important to realise that at this point, it’s possible to soften the blow of potential economic chaos through responsible planning. This is why recession preparation for physicians is so important.
Below you will find tips for recession preparation for physicians:
- Track Your Money:
Make sure to assess all the money involved in your business plan, such as fixed expenses, projected earnings and cash flow. You also need to determine which overhead items are necessities and which ones you can live without, both personally and in terms of your practice. Calculate the amount you need to sustain the practice and stick to that number.
- Manage Risks and Assets:
Hire an experienced broker and determine which types of insurance make the most practical sense for you and your assets. Insuring predictable risks isn’t worth it, so refrain from doing so. However, the kinds of insurance you absolutely must get are these: disability insurance, personal and business-life insurance, personal liability insurance, and all specialty business liability insurance.
- Spend Responsibly:
Avoid any lavish or extravagant purchases in general and make sure that the purchases you make are able to provide some kind of long-term cost efficiency to you/your practice. The amount of money you can save in this way can create what is essentially a cash reserve that can come in handy in urgent times.
- Maximise Savings:
In the current economic climate, it’s best to identify which areas of your finances are liabilities. Assess how much you are spending on coding, billing, reducible expenses, collections, etc. and then see how you can minimise expenditure on them.
- Protect Your Market Share:
Remember that your practice is in fact a business and must be maintained as such. Preserve your position in the market by making it easy for patients and professionals to contact you. Additionally, try to identify potential revenue opportunities. Lastly, don’t hesitate to delegate certain responsibilities to consultants or lawyers. Use the expertise of these professionals to run your business more efficiently.
As you can see, there are many strategies that can be employed with regards to recession preparation for physicians.