5 ways to diversify revenue streams in your medical practice
Having diverse revenue streams equals healthy revenue cycle management for your practice. Here are 5 approaches to explore.
At a Glance
- Revenue diversification for healthcare practices is critical for reducing reliance on a single income source and can be achieved through strategies like extended hours and offering new services.
- Practices can also bolster their revenue by introducing in-house ancillary services, renting out extra space, using de-identified patient data, and incorporating pharmacy services.
- These diversified revenue streams enhance patient satisfaction, increase operational resilience, and protect against economic unpredictability.
The challenges around generating revenue in healthcare are widely recognized, with many practices finding it difficult to remain operational. Given the looming unpredictability with the economic climate, you might be contemplating strategies to financially safeguard your practice. A strong approach to consider is diversifying your revenue streams. Here are 5 HCM tips to look into.
What is revenue diversification and why is it important?
Revenue diversification refers to establishing various income streams for your organization, ensuring that no single source is dominant. This often means exploring alternative strategies and services to bolster revenue and reduce vulnerability.
“By tapping into new areas that align with their primary operations, practices can see strong profit growth and better navigate economic challenges.”
In the dynamic landscape of the healthcare industry, this approach is especially vital. Over-relying on conventional models and resisting change can be detrimental to a practice. By tapping into new areas that align with their primary operations, practices can see strong profit growth and better navigate economic challenges. Revenue diversification encourages being proactive rather than reactive.
5 ways to diversify medical practice revenue streams
Broadening your revenue streams can seem daunting, but knowing the right avenues can simplify the process. Here are 5 strategies for your practice to consider:
1. Extend operating hours with urgent care services
By offering urgent care services outside of regular hours, you can attract new patients seeking immediate attention, which boosts practice revenue. Moreover, doing so retains existing patients who might otherwise have to head to a nearby urgent care facility.
2. Introduce ancillary services relevant to your specialty
You likely recommend services to your patients that they must seek externally. Why not offer those services in-house? This can elevate patient satisfaction and increase revenue. Services could include lab testing, imaging, rehabilitation therapies, or even medical spa treatments for dermatology practices. Many healthcare providers have explored this strategy and reaped benefits.
3. Rent out excess space to another service
If you're apprehensive about offering an additional service, consider leasing out any extra space within your premises to another healthcare provider. Ideally, their services should align or complement your specialty. Ensure you properly vet the business you're partnering with and enjoy the additional practice revenue.
4. Capitalize on de-identified data
Today's healthcare environment is data-rich. Ensuring patient privacy is paramount, but there are ways to make de-identified data a revenue source. This might involve in-house data analysis to obtain insights that allow you to streamline workflows, or selling this anonymized data to third-party entities aiming to improve population care on a broader scale.
5. Bring pharmacy services in-house
Prescriptions are often a core component of treatment plans. By bringing pharmacy services onsite, you can not only diversify revenue but also enhance patient convenience — which can subsequently improve medication adherence.
What are the benefits of revenue diversification?
By adopting these approaches, you can create a more resilient and diversified financial structure for your practice. Though diversifying practice revenue may seem like an overwhelming task, it becomes more approachable when you think about innovative ways to cater to your patients' needs.
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