Can technology make you money?

This week I was conducting an on-site valuation visit at an orthopedic practice that a hospital client of mine is looking to purchase. During my visit, it was very apparent that their technology was way outdated. I mentioned this to the younger physician in the group (there are only two physicians) and got this reply:

"Nobody can convince me that spending $40,000 on new technology is going to make me money."

Hmmmm………my first thought? – this guy must live in LaLa land. That comment sums up precisely one of the biggest problems within medical practices today – getting physicians to INVEST in their practices to improve efficiencies and profits. In this era of declining reimbursement, most just don't want to make that commitment. However, this short term thinking is going to end up hurting a lot of practices eventually in my opinion.

Of course technology can make you money!!! You've obviously have got to pick the right technology for your practice and make sure it's implemented correctly. This is especially true of EMR – I've seen the paperless office and it works beautifully and makes practices money!!

So the obvious point I want to make here is that practices do need to INVEST in their future……..failure to do so could and can result in long term troubles. What do you think?

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.