Building a Stronger Practice through Thoughtful Reinvestment

Summary

Higher reimbursement rates from payer contracts can provide healthcare practices with the financial boost needed for long-term growth and improvement. In Part 1 of our Windfall Series, Reinvesting New Revenue, we explore key areas where practices can make impactful investments, including staff development, technology upgrades and expanding services to foster lasting improvements in both financial health and patient care.

Introduction

Higher reimbursement rates from payer contracts can improve a practice’s financial outlook. At Tribunus Health, we’ve seen how practices use this additional income to strengthen their services and operations, often resulting in future increases in reimbursement rates. 

Here are some ways we’ve seen clients reinvest strategically to make a lasting impact.

Prioritizing Staff

Your team is the core of your practice. One of our clients, a regional home infusion provider, invested in their employees’ education through training on specialty drug pricing as they began to provide specialty products. Investing in your workforce can enhance morale and improve patient outcomes. Options include:

• Bringing salaries in line with market benchmarks
• Developing performance-based incentives
• Improving benefits offerings
• Allocating funds for professional growth

Upgrading Technology for Greater Efficiency

Modern tools help healthcare practices work more effectively. For example, a radiology oncology practice was able to invest in upgrading their advanced imaging equipment. Consider investing in:

• Enhanced EMR systems
• Improved patient portals
• Telehealth platforms
• Advanced diagnostic tools
• New practice management software

Growing Your Practice

With increased revenue, practices can consider expansion opportunities. Our client, Comanche County Medical Center, a rural health provider in Texas, was able to open new locations to better serve their communities. Here are some possibilities:

• Hiring more providers to meet patient demand
• Adding new specialty services
• Establishing satellite offices
• Extending hours to increase access
• Acquiring specialized medical equipment

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Evaluating Results

To ensure success, track both financial and operational improvements, such as:

• Patient satisfaction levels
• Reduction in wait times
• Employee retention rates
• Provider revenue generation
• Growth in patient numbers

Step-by-Step Implementation

Reinvestment should be phased for maximum impact:

1. Short-Term (1-3 months):

• Adjust compensation packages
• Begin evaluating technology needs
• Plan training initiatives

2. Mid-Term (3-6 months):

• Implement selected technologies
• Roll out staff development programs
• Initiate workflow improvements

3. Long-Term (6-12+ months):

• Explore expansion opportunities
• Add new service lines
• Bring on additional staff

Final Thoughts

Strategic use of improved revenue can encourage growth and better outcomes for both your staff and patients. Tribunus Health specializes in helping practices maximize their resources.