Managing Practice Costs Amidst Inflation and Tariff Pressures

Rising input costs hurt small businesses especially healthcare practices and agencies. Unlike some industries, healthcare enterprisers cannot easily pass along cost increases to their clients. Reimbursement rates are set by contract long before practices pay for input costs. Physicians Practice wrote an excellent article about tactics that medical office administrators can implement to lessen the pain of rising costs due to inflation and tariffs. Here is a summary of their recommendations.

1. Participate in Group Purchasing Organizations.

2. Renegotiate Supplier Contracts.

3. Keep lean inventories; Avoid excess inventories.

4. Search for alternative suppliers with better terms.

5. Buy in bulk when the storage costs and spoilage are minimal.

6. Consider refurbished or leased medical devices when it makes sense.

7. Minimize wasted when using supplies and train staff accordingly.

8. Monitor costs using data analytics. Track your spending patterns.

9. Update your budgets to anticipate inflated costs and likely tariff hits.

10. Use professionals like CPAs, bankers, and attorneys to help navigate these issues.

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