Assign responsibility for controlling supply costs

With all the other big issues to tackle, how do you find the time to control necessary but too-often untracked supply expenses? The solution: Appoint one of your staffers to serve as inventory coordinator (IC) with defined responsibility for all supplies.

You probably have one team member who is very cautious with money, comparing prices before making any purchase. That’s the person to appoint, expecting the appointee to look after supply outlays as if it were his or her own. Though not essential, consider it an asset if he or she has clinical experience.

To get your IC under way, review with this person last year’s financial statement to determine your annual supply outlays — both clinical and business. Divide these figures by twelve to arrive at reasonably allowable monthly expenditures for this year before efforts to trim them. They help you set a dollar amount your IC can spend without your approval.

The automatic approval limit helps eliminate impulse buying and encourages well-planned, researched purchases. Anything over that amount — and certainly major purchases — must be cleared with the physician or manager/administrator first.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.