by Michelle Tohill
There is an old saying in business: you can’t manage what you don’t measure.
With shrinking margins everywhere in the DME business, it is more important than ever that you carefully track all of your inventory and reimbursements. The days of sloppy monitoring are over, and it’s time to get serious about managing overhead and maximizing reimbursement.
Here are three elements of your business that you should be monitoring:
1. Accounts Receivable: You should always be able to see where your A/R stands at any moment. Monitor outstanding A/R, DSO, bad debt reserve, aging accounts, denials, and all the other elements critical to getting paid. You should always know when a claim is ready to expire, as there is no excuse for missing deadlines. With our software, built-in alerts ensure you never miss a claim deadline.
2. Inventory: How much inventory is sitting in your warehouse? You should always minimize sitting inventory to reduce overhead. Our software makes keeping track of inventory easy, but even more important is that you can leverage just-in-time ordering and drop-shipping to reduce carrying costs.
3. Profitability by Product: Do you know which products are most profitable for your business? It can be easy to get caught up in customer demand without paying careful attention to product profitability as a driving force in your business. Track which supplies or services are most profitable and try to increase margins wherever possible.
Running a DME business is hard, but it doesn’t have to be that way. With the right software and support, you can increase your profitability and maintain healthy margins.