Whether you operate a day hospital or a small practitioner’s clinic, a strict budget is essential for success and profitability. Any amount saved can provide financial flexibility for your practice. This may in turn allow you to purchase new medical equipment, hire that extra team member or undertake necessary maintenance.
Not having a proper budget can lead to a number of problems, from negative impacts on productivity and patient satisfaction to supply waste and inappropriate purchases.
By learning how to create a budget for your medical supplies, you can avoid many of these common pitfalls and ensure that your practice is in a position to grow.
The team at Curve Accountants possess the experience and knowledge needed to help those who work in the medical, dental, allied health and veterinary industries develop financial strategies that drive long-term wealth. For personalised advice, contact us today.
Creating A Budget For Medical Supplies
Below, we take a closer look at eight factors that need to be considered when putting a budget together.
1. Put The Right People In Charge
The people who should be creating the budget are the people who will actually be responsible for purchasing medical supplies. This could include yourself (as the doctor/owner of the practice), other doctors you employ, and/or the practice manager.
2. Determine What Medical Supplies You Need
Keep in mind that the needs of every practice often differ based on the services and procedures performed. Create a list of all the medical supplies needed by doctors, nurses, and other medical practitioners to ensure that the practice runs as smoothly and efficiently as possible.
3. Consider Any New Services
Are you adding any new services to your practice in the coming year, such as contraceptive insertion or physical therapy? Be sure to include any medical supplies required to undertake these services in your budget.
4. Review Last Year’s Usage
It can be difficult to determine how much medical equipment or consumables you’ll need for the year ahead, which is why it can be helpful to take a look at how much you used in the previous year. This will enable you to come up with a reasonable estimate.
5. Consider An Inventory Management System
If, while reviewing last year’s medical supply usage, you discover that you’re placing too many last-minute orders (and, therefore, spending far too much on expedited shipping), an automated inventory management system may be of assistance.
The system can alert you when items fall under a specific threshold and even reorder them for you if you desire.
6. Determine Your Main Revenue Streams
Create a list of your medical practice’s key revenue streams. For example, immunisations and geriatric care. By determining which sources earn your practice more money, you might consider allocating more of the budget to these areas.
7. List Your Expenses, And Track Them
Every medical practice will have a range of fixed and variable expenses. A variable expense could include clinical supplies (like bandages), whereas a fixed expense could be an equipment rental repayment.
Add all your expenses up and subtract them from your net income; if you find that your expenses are higher than your forecasts, you’ll need to consider cutting back on some less important medical supplies.
8. Consider Ways You Could Save Money
There are a number of ways that your medical practice could perhaps save money – you might consider switching to a more affordable medical supplier (just make sure you do your due diligence first) or you could invest more in electronic health records and practice management systems.
Budgeting For Unexpected Medical Practice Expenses
Unexpected expenses crop up every now and then, so it’s important that you’ve allowed for those in your budget. Renovations, for example, are renowned for costing more than expected and equipment breakdowns do not occur on schedule. What if a flu or chicken pox epidemic were to occur in your area? More medical supplies may be required than what you’ve allowed for.
Ensuring that you have room in the budget for unforeseen circumstances will allow you to continue treating your patients as quickly and efficiently as possible.
Locking Down A Medical Supplies Budget With Curve Accountants
Ensure the success and profitability of your practice with a strict medical supplies budget. We are dedicated to supporting those who work in the medical, dental, allied health, and veterinary industries. Our team of accountants at Curve can help build a budget that covers all the medical supplies you and your doctors need moving forward.
Get in touch with us today for help in creating a medical supplies budget and other useful financial strategies.
