Five tips from Mr. Schiff, according to a Nov. 2 article from ADA News:
1. Build an emergency fund. Have at least three months’ expenses saved as a general practice, but during times of financial uncertainty, it is best to save more.
2. Evaluate expenses. Practice owners should consider re-evaluating their practice’s working capital. Mr. Schiff suggests 30 to 60 days of working capital within a practice. Also, review the current debt on the practice as there may be an opportunity to refinance practice debt at a lower effective interest rate.
3. Nurture your team. Focusing on retention is key. To encourage retention, show staff gratitude and pay competitive salaries.
4. Work with patients who may also have financial concerns. Consider offering patients flexible payment plans to make treatment more affordable for them.
5. Protect investments. Maximize retirement plan funding, and do not use the money to pay off practice debt.
