Welcome to your weekly video tip with Cash Consultants.
Dave Kats: Hey? This is Dave Kats with Dr. Michael Perusich with Kats Consultants and we have a tip for you. You know, you have to think about going either all cash or at least getting off some of the insurance panels that aren’t paying you well. We literally have clients who insurance companies the global fee they pay for even the first day is just $40 and the patient maybe paying 30 to 35 of that $40 and it doesn’t make any sense, because all they are doing is keeping their thumb on you, the insurance company, they’re not really paying anything.
Dr. Perusich: That’s right and if we asked a question to all of our clients and really every chiropractor in the country, if I said, “Are fees from– is reimbursement from insurance companies going to go up or down the next year?” What do you think the answer would be? It’s going down, if that situation is not improving, we are in this environment right now where it really makes sense to try to move as much as your practice as you can to cash.
Dr. Kats: It doesn’t have to be all cash, you’re about 85% cash and I would say that we are 50% cash, maybe 60% cash, but you got to decide which low payers you haven’t kick them to the curb. If they are only going to pay you $40. Why would you ever stay with an insurance company that pays you $40? You can get off that panel and charge the patients $50 cash and be money in hand, you’re not filling insurance and you are making $10 more.
Dr. Perusich: That’s absolutely right. You really need to analyze what your insurance companies are reimbursing you, chart it out, figure out what they are paying for each of the major codes that you bill them and find out really what they are reimbursing. You also need to know how much you are making in relativity to what your overhead is. You need to know what your cost of delivery of care is and you might be surprised how slim your margins are when your accepting insurance.
Dr. Kats: One other thing, if you’re seeing patients for next to nothing, they are taking up a spot that a higher paying patient could be taking with the union in your practice. Make sure that you just analyze your practice before you go on this year and decide which insurance companies you should be with, which ones you shouldn’t be with. Kick the low payers to the curb you are going to be a lot happier. This is Dave Cash with Doctor Michael Perusich with Kats Consultants and we would like to thank you for listening.
Dr. Perusich: Hi everybody. Hope you enjoyed this week’s video tip. You know, don’t forget. Doctors if you’re members of Kats Consultants you can join us each and every Tuesday at 1 o’clock central time for our weekly webinar where we cover topics like this week’s video tip. Also don’t forget, as a member your crew, your office crew also has a call on Wednesday every week at 1 o’clock central, where we cover office procedures, motivations, goal settings all kind of different things just for your staff and if you’re not a member, I challenge you to give us a call, check out our website and become a member. We offer great seminars, great educational programs and everything you need to take your practice to the next level. I’m Mike Perusich with Kats Consultants.