The COVID-19 outbreak has caused financial havoc for healthcare organizations around the globe.
With the coronavirus still in full swing, hospitals, clinics, and practices have likely had to throw their business budget out the window to stay afloat. While the short-term outlook varies greatly by location, the extent of the COVID-19 outbreak, etc., it’s important to consider what recovery mode will look like once the economy returns to a state of normalcy.
When the recovery happens, you’ll need to have adapted your budget to account for the new normal. To see how, here are five tips to get your business budget back on track after the coronavirus:
- The Numbers Have Changed
Because cash flow may be different from what it was pre-coronavirus, now’s the time to rework your business budget and do some much-needed tweaking. If your clinic or practice experienced a drop in income throughout the coronavirus pandemic, you’d need to account for that in your budget. You may have to make some sacrifices, such as cutting unnecessary expenses and reducing spending. If your cash flow wasn’t negatively impacted, you should still consider taking a look at your numbers to ensure your spending won’t exceed your income.
- Forecast your Financials
Financial forecasting can help you estimate your practice’s future financial health by looking at past financial data and reports. Forecasts can help you project your business’s income, expenses, and more. They can also provide profit and loss statements, balance sheets, and cash flow. Forecasting can get your business back on track financially and help you alter your budget plan after coronavirus to prepare for potential future emergencies.
- Account for New Spending
As part of your coronavirus recovery, you should have a clear idea of what you need to put into your budget. For example, you may need to spend money on hiring and training new employees or rehiring ones you had to lay off. Your goal should be to eliminate the monetary waste and get your operating budget as lean as possible so that when the chance to invest in growth comes up, you can take advantage of it.
- Develop a Timeline
You may have several things you need or want to do to recover following COVID-19, but doing everything at once may not be realistic. For example, your immediate goal may be securing funding for your business. Once you’ve done that, you can set a timeline for rehiring employees and reopening your doors if your practice closed due to the pandemic.
- Create a Contingency Plan
While the coronavirus pandemic may seem like a once-in-a-lifetime event, the reality is that an emergency can come along to disrupt your business at any time. Using what you’ve learned during the current pandemic to prepare for the next crisis can help you insulate your business from future shocks.
A Final Thought
In many ways, COVID-19 has had negative effects on most businesses – including healthcare organizations. One positive may be that the pandemic has shown healthcare professionals the importance of being adaptable to keep their business fluid. That holds true for looking at future budgets that aren’t designed for “best case” scenarios but are ready to weather unforeseen storms.
At GHR RevCycle Workforce, we specialize in providing Revenue Cycle workforce solutions across our Coding, Clinical Documentation Improvement (CDI), and Case Management services. To learn how we can help you find the right fit for your needs, visit our GHR RevCycle Workforce website today. We have access to the talent you’re looking for!