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How Physician Practices Can Benefit from CFO Services


The solo or small physician practice typically has the following skills sets: the skills of physician, the skills of other clinicians such as a registered nurse or nurse practitioner, and the skills of clerical staff. This leaves a gap when it comes to business activities which require a higher level of skill than clerical staff possess, often leaving the physician to perform non-revenue generating tasks outside of his or her realm of expertise.

As a physician, you may be wondering whether it makes more sense to lease or buy a piece of equipment for your office. By using the services of a part-time CFO, you can get advice about the best financing terms, impact on taxes, and other considerations to help you make the best decision for your practice. A part-time CFO can help you by quickly making these determinations while you continue to see patients and generate revenue.

How Physician Practices Can Benefit from CFO Services

Perhaps your practice is subject to seasonal and other fluctuations and you need help managing cash flow or applying for a line of credit or other loan. A part-time CFO can ensure that your financials are in order for lenders, help you understand how improve your profitability and cash flow, and assist with projections and planning.

A part-time or interim CFO can also provide guidance on major business decisions such as whether you should plan office hours in different locations or change your office hours. One larger specialty group thought that they could make more money by staying open for longer hours during the week and opening the office for half days on Saturdays. However, once the incremental costs for support staff overtime were considered relative to any projected incremental net revenue from the anticipated mix of visits, it was determined that the additional hours were unlikely to be profitable. If you are thinking about changing the nature of your business, you can take advantage of insights from experts who have made similar changes for other practices, rather than hoping to get it right the first time on your own.

With often unfavorable changes in the insurance and regulatory environment, many physicians have considered whether to move towards a concierge practice. A part-time CFO can work with you to help estimate local demand, set an appropriate pricing level, and calculate the break even number of patients to make the new business model viable. Similarly, when adding a new line of service, such as supplements or a medical spa to add cash business to offset declining insurance reimbursement, a part-time CFO can model revenue, expenses, and any upfront costs for the new service.

Outsourced CFO services can give your practice convenient, access to quality financial expertise on an as-needed basis, without payroll costs, benefits expenses, or the need for day to day supervision. These service providers can meet your practice’s individual needs with a wide range of customized services including accounting, outsourced bookkeeping, financing strategies, cash flow planning, data management with many reports accessible 24/7 from any internet capable device.

About the author: 

CFO Business Growth Solutions, LLC is a provider of part time CFO and interim CFO Services, nationwide accounting & bookkeeping Services, debt restructuring and management turnaround, business intelligence applications and due diligence support services. For more information go to

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