For healthcare providers/CEO’s, as with all small business owners, the return to normalcy after the tragic pandemic runs its course cannot come too soon. The trillion-dollar question for medical practices is whether the return to normalcy translates to the same patient volume and revenues as clinics had prior to the outbreak.
If history is any indication, then the answer is a resounding yes.
Using the recent “great recession” as an example, which officially began in December 2007 and ran until June 2009, healthcare expenditures grew uninterruptedly from $2.71 trillion in 2007 to $2.86 trillion in 2009.
During the period of December 2007, when unemployment was at 4.7%, and May 2016 (peaking in 2009 at 10%) when unemployment once again returned to 4.7%, healthcare expenditures grew consistently each year from $2.71 trillion in 2007 to $3.478 trillion in 2016.
What Provider/CEO’s must not forget is that the problems that existed in their industry will not be solved; their share of healthcare expenditures will not miraculously increase, insurers will not suddenly start paying their claims on time and in full and patients will not immediately be joyous and appreciate of the care that they are providing.
Additionally, post-pandemic problems that provider/CEO’s will have to include the added disruption of having to deal with months of declining revenue, the backlog of patient appointments, having to perhaps rehire and retrain staff that has moved elsewhere.
Getting back to work, with the added pressure of restarting their practices and income stream from scratch, in some cases, without any additional manpower and expertise could be fatal for many clinics.
PE for Healthcare can help. We offer cost-effective and innovative solutions for the small to medium size medical practice, including temporary administrative staff, financial management, supplementary revenue cycle staffing and operations/financial consulting,
Contact us to find out how you can receive a complementary KPI Medical Practice Assessment.