Better performing medical practices use the following techniques to increase profitability:
- strategic and profit planning;
- cost management;
- evaluation of capital structure and investments;
- evaluation of tax policy and management;
- internal controls; and
- financial reporting and performance evaluation.
Physician practices that have superior levels of performance in four areas:
- profitability and management costs;
- production, capacity and staffing;
- accounts receivable and collections; and
- managed care operations.