Once you’ve identified the ideal healthcare practice to purchase, planning the transition of business operations is essential. PNC’s Michael Olson, senior Healthcare Segment advisor, discusses ways to design a plan that can help you ensure success.
Mike Olson: Hello, my name is Mike Olson and I'm the Dental Industry Segment Lead with PNC's Healthcare Banking Team. Today, I'll be taking time to talk about: Medical, Dental, and Veterinary Practice Acquisition - Transitioning the Business Operations. You have identified the ideal practice to purchase and have completed all of your due diligence.
As you prepare to close on the new practice, it is imperative that you take time to plan how you will transition the business operations. The plan you design in conjunction with your advisors needs to be thorough and ready to be implemented on the day of closing. Setting up a meeting with your banker to help you open your accounts, discuss your collection processes, and making sure you're able to pay all your bills on time is an important first step.
In that account opening meeting, your banker will discuss an operational account, a payroll account, and an account to accept insurance payments. It is also advisable to have an account for excess funds to help save for large purchases. and plan for unexpected expenses. We set up these different accounts to help provide some protection.
You need to be diligent in who has access to your account numbers. Our online banking application is a great way for you to access your accounts, check your balances, and see what checks have cleared. And it also helps you detect fraudulent activity earlier than waiting until your monthly statements arrive.
Using mobile apps, ATMs, and brick and mortar branches allow you to access your account 24 7. Now that we have your account set up, It is time to make sure they are funded. Flexible payment options like credit cards, text to pay, and online payment options are convenient for your patients and help your cash flow.
Making a habit of collecting at time of service is really important. Your team needs to be prepared to collect and verify insurance benefits, setting the expectation that payment is due, and to be able to give your patients an accurate statement balance. Many offices have an insurance coordinator who handles these tasks.
Training multiple front desk staff is not only great for coverage during vacations, illnesses, and unexpected absences, dual control is also a good fraud preventive measure. Now that you've collected the money, it's time to make some payments. There are three major types of payments you will need to make in your practice.
Payroll, vendors and suppliers, and patient refunds. Earlier, we discussed using an account for payroll as it's imperative your employees get paid timely. Using a third party payroll service can help ease the burdens of calculating paychecks, tax withholdings, helping with end of year reporting, and making sure your payroll is accurate.
Now let's discuss paying your vendors and suppliers. Establishing a rewards credit card not only extends the time to make payment, they come with points that can be redeemed for gifts, cash, or statement credits. Being able to pay vendors quickly with a credit card can also help you take advantage of early pay discounts.
Establishing a monthly process for your payment refunds is not only good customer service, it also keeps your accounts receivable in order, so you know it is owed the practice. Acquiring your practice is just the beginning of what will be years of servicing your patients and the community. Staying engaged with your advisors allow you to focus on patient care, your team, and growing your practice.
Meeting with your local PNC healthcare banker, along with the tools and resources available at pnc.com/hcprofessionals, is a great way to hear about market trends, learning from other successful practice owners, and staying in the know of the latest products and services that PNC provides.
It's time to set up that appointment with your local PNC healthcare banker. Thank you.