We had a student ask a question that we thought might be of interest to you, as well. The question: "What information do I need to consider before opening and running a cash practice?"
by Mike Whitmer in Payments and Collections on Sunday, June 28, 2015
Here are a few words of wisdom and caution we have elicited so far:
"A cash practice depends on the economics of the area you choose to practice in and the benefits available to the patient."
"The best advice you could receive is to find yourself a reputable tax accountant or CPA who will help you set up ethical accounting practices."
"New practitioners may fall prey to "cash box" living, pulling $20-$30 dollars from the till to pay for lunch and then not accounting for it when the time comes to pay the bills."
"Will the D.C. refuse Medicare patients then? If they don't, they can be required to submit insurance forms."
"Remember, when patients have insurance, they tend to stay within the parameters of their company's rules to maximize benefits. They are given a book of providers that they may visit for little or no outlay of their own money. If you are a "cash only" practice, you will not be listed in the book of providers which may slow business growth."
"Inform your patients when they make appointments with you that you ONLY accept cash, credit and debit cards. Reinforce this policy with a placard at your front desk. Then get a credit card processing machine, (NCMIC offers this product) for the ease of the patient and prompt payment."
"The most successful practices, cash or otherwise, are the practices where the doctor listens to, educates and cares about...the patient. Then the patient is quick to refer and referrals build business."