COVID-19 has created significant financial challenges for physician practices. The number of patient visits and surgical procedures have declined dramatically as a result of the Public Health Emergency (PHE) declared by the current administration.

Physician practices have sustained a 55% revenue plunge on average, according to a new survey from the Medical Group Management Association (MGMA), a trade group based in Englewood, Colo. Average patient volumes are down 60% during the same time period, the survey shows. Overall, 97% of medical groups are suffering negative financial repercussions.

Physician practices will have the opportunity to reopen their practices within the next 30 to 90 days depending on their state’s COVID-19 situation. The new business environment will require a phased reopening and is being described as the “new normal”. This challenging  environment will require physician practices to consider the following steps to improve its financial health:

• Review your historical financial trends and use it develop a plan to get back to your prior PHE patient servicing levels.
• Set up a cash flow budget to ensure that you can meet key spending requirements (i.e. payroll expenses for the staff; the repayment of loans; and the repayment of accelerated Medicare payments where appropriate).
• Adjust your normal budget expenses for medical supplies, office supplies, etc. to the anticipated lower patient volume as you ramp up patient services in steps or phases.
• Make sure you have Personal Protective Equipment (PPE) supplies for you and your staff. Some states are requiring  a minimum level of PPE inventory to reopen a practice.
• Contact your active patient base and referral sources to advise them you are reopening – use your website and/or text and email your patients and contacts where appropriate.
• Continue to develop telehealth as a critical component of your practice – Especially use this technology for established patient visits – Give new patients the option of telehealth versus in-office services where possible.
• Conduct a virtual meeting with your staff to share your plans to reopen your practice.
• Advise hospitals where you have privileges that you are reopening your practice.
• Contact your banker, business advisor, healthcare attorney and key suppliers about your plans to reopen. Keep them updated on a monthly basis.
• For the first 6 months, reevaluate your plans and budgets on a monthly basis.

This “new normal” financial environment will be challenging but achievable. Planning and working together with your business and clinical team will allow you the opportunity to return to  your prior PHE patient production levels.