Practice A collects its money in the industry standard sixty (60) days while Practice B collects its money in 40 days on average. Practice A turns its inventory twelve times per year while Practice B turns its inventory 24 times per year. Look at the substantial difference that managing these two assets more effectively can make to your bottom line.

  Practice A Practice B Savings
Annual Billing Volume $12,000,000 $12,000,000 -----
Outstanding Claims (A/R) $2,000,000 $1,333,333 $666,667
Potential Collected Difference assuming
a 60% collection to billing ratio
Inventory Investment $300,000 $150,000 $150,000
Inventory Shrinkage 7% 2% $ 18,000
Uncollected Claims 15% 5%    $233,333
Total Annual Cash Flow Savings     $801,333
Cost of Funds (at 6%)     $48,080

It’s a pretty safe bet that the physicians in Practice B are much happier. The additional cash savings, instead of being tied up in unproductive assets, are available for investment in new technologies, new ancillary services, or even their personal retirement plans. As an added benefit, the risk of loss is also greatly reduced.

Vista Group can show you how to get from A to B!   Learn how…


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