Are you prepared for 2016?

It is that time of year again—time to start budgeting for 2016. Do you have a plan in place that will set your business up for success or are you worried about what another year will do to your bottom line?

With rent generally increasing each year along with total overhead costs, some businesses are not prepared for what the New Year will bring. Budgeting, and sticking to that budget, is the only way to set your practice up for success.

Do you know what percentage of overhead should be allocated to each of your expenses such as employee wages, physician’s compensation, medical supplies and malpractice? Sometimes, it is hard to know if you are budgeting the right amount to each category.

Here is an example for what you should be using to accurately allocate your budget based on your industry:

Allergy Internal Med Urgent Care OBGYN
Physician Compensation 48% 55% 47% 55%
Employees 26% 25% 30% 26%
Occupancy 7% 7% 7% 6%
Office/G&A 7% 8% 8% 7%
Medical Supplies 7% 3% 6% 2%
Malpractice 2% 2% 2% 4%

We want you to be ready for the coming year and for your business to be setup for success.

UPS offers help with creating an achievable and realistic budget to include patient volume, expenses, and revenue streams based on the services your practice provides or should be providing. Contact us at 602.685.9500 or for a budget review to make sure you start off 2016 on the right track.