The Costs of Starting a Chiropractic Business
There is more to starting a chiropractic clinic than finding the right building and making sure you have the proper paperwork in order. To be successful in your business venture, you need to take a deep drive into the costs associated with starting your own practice. In the first year, you can expect to spend $100,000 or more in initial startup costs, according to a recent survey of chiropractic doctors. An empty office space can cost up to $50 per square foot, which can rise quickly depending on the part of the country you live in. Furniture can easily cost you up to $60,000. Other costs include business and medical insurance, continuing education, license renewal, labor and overhead cost, rent, and other utilities. On paper, these costs may appear intimidating. But this isn’t the end of the world. Really isn’t. The cost can be made up by the amount you charge each of your clients, which will vary with your services and treatments provided. In 2021, chiropractors in the U.S. indicated they had a 30% to 35% profit margin. When it’s time to head to the bank, lenders will ask about your start-up costs, your liabilities, your assets, and your net worth. Be prepared to talk about your existing cash flow and your business plans to generate income to pay back bank debt.Here’s what Genesis Chiropractic Software comes into play. Our system is one of the most effective EHR software options available. Our software will act as your fully functioning front desk, eliminating the need to hire an office manager or front desk staff person. This will give you more time to focus on patients rather than paperwork. Working with us is proof to the bank that you’re prepped and ready to handle billing the right way. Genesis Chiropractic Software offers billing software that will double your patient volume, without increasing your staffing needs. Equally beneficial, patients find the interface easy and intuitive to use and it increases their engagement in their care plan since they have full access to their records and S.O.A.P. notes in the software. Patients feel that you value their time when they don’t have to repeat paperwork for each visit, which will lead to high retention rates and loyal referrals. At Genesis Chiropractic Software, we provide assistance with insurance billing and exceptional customer support, saving your practice even more time and expense. Our EHR and billing systems are offered at affordable plans designed to help you from your practice’s very first day.
The 5 Best Billing Tips Every Chiropractor Needs to Know
For chiropractic practices that accept insurance, the economic success of a business depends on the timely submission of accurate claims and receipt of reimbursements. However, a chiropractic claim process can take weeks or even months for claims to be reimbursed by insurance companies. Improving the claims method and claims submission process will result in faster submissions and improved first-time approval statistics. Learn how to improve your claims process, submit claims, post payments, and track all your insurance claims efficiently. 1. Ensure Your Process for Claims Runs Smoothly One of the easiest ways to make sure your billing process for chiropractic care runs without a hitch is to keep claims processing running like a well-oiled machine. Explore systems of organization that allow you to automate processes like Genesis Chiropractic Software. 2. Look at Cloud-Based Chiropractic Software Options Cloud-based technology is the current trend for chiropractic billing software, and it’s not going anywhere any time soon. These options, like our industry-leading software, provide all-in-one solutions for billing, patient management, and more. 3. Do Not Delay in Posting Adjustments/Write-Offs You might see big numbers like $35,000 in receivables, but in reality, only $25,000 is written off. Actual receivables are displayed only when all value adjustments/write-offs have been posted. Checking amortizations and adjustments against tariffs and policies can also help you spot payment errors. 5. Outsource Your Chiropractic Medical Billing Many chiropractic practices are accustomed to handling the claims process for chiropractic insurance policies in-house. However, if you’re making more than $50,000 a year, consider outsourcing billing to a professional who can handle it for less than your hourly rate. Some billing companies charge a percentage of the collection. Hourly wages at these companies are about minimum wage! So sometimes it’s not easy. Contact us today to learn more about how Genesis Chiropractic Software’s billing services can help you achieve long-term financial success while providing superior patient care. Genesis Chiropractic Software’s chiropractic billing services include coding review, rejection management, payment notification, AR follow-up, and other services. Contact us to learn how leading practices are increasing revenue with billing services. 6. Automate Your Billing Process Complex and repetitive billing tasks that can be easily automated with chiropractic billing software strain your business. You or your billing representative can spend hours submitting claims that could otherwise be used for more patient-centric services. Chiropractic claims software allows you to access, submit, track the status of, and schedule payments for medically required documents for your insurance claims all in one place. With 24/7 access to Chiropractic’s EHR, billing software, and patient records, you can avoid a lot of billing hassles right from the start. You can leverage the chiropractic billing software to avoid coding errors and send claims with just a few clicks. An integrated clearinghouse will scrub your claims before submission You can leverage the software to avoid coding errors and send claims with just a few clicks Readily track claims that have been paid and which require follow-up. You can run regular accounts receivable reports to identify outstanding claims. Your staff can separate accounts receivables by insurance and patient balances. Overall, using chiropractic insurance accounting software reduces overhead and operational costs and increases the speed of chiropractic claims. An efficient chiropractic medical billing process and the best chiropractic billing and coding practices can help increase your practice’s revenue and streamline your operations. Automating your claims process with Genesis Chiropractic Software can make your claim and claim process fast, efficient, systematic, and accurate. Improving your chiropractic billing process by following the methods above will ensure long-term success while providing the quality care your patients expect.
How to Start a Chiropractic Business with Financing
The money required to start your own chiropractic practice may seem intimidating, but here’s how you can navigate startup costs and more. The total cost of setting up an office, hiring staff, and purchasing medical equipment can quickly add up. Plus there are additional obstacles. It’s important to remember that most lenders treat chiropractic care as alternative medicine when it comes to loan terms. So, you may not get the same rates as doctors and dentists. Here are ways to finance your chiropractic practice: Types of Chiropractor Loans Long-Term Loans: These are loans that can be paid off over many years. They can be used for large purchases like medical equipment, new construction, or to buy property. However, it’s more difficult to qualify for low interest rates for this type of loan. Short-Term Loans: If you need to borrow money for a small amount of time, this may be the right fit for you. Common expenditures here include salaries, rent, and medical or office supplies. These typically come with higher interest rates. Equipment Financing: These come with lower interest rates but at a cost. Equipment financing is when lenders use your actual chiropractic equipment as collateral in the event you default on your loan payments. Line of Credit: A low-risk form of financing with higher interest rates. Your financial institution will determine the maximum line of credit extended to your business. Payments can be made monthly or as agreed upon with your bank. What You Need to Know About Lenders Banks and credit unions: This is the go-to option for many people. Often considered traditional and trustworthy, rules and regulations for borrowing tend to be strict. This tends to be a more reliable option for established businesses as they have a higher chance of approval. Government: You may be eligible for funding from the U.S. Small Business Administration (SBA). The program means the federal government agrees to partially pay a portion of your business loans. However, this is typically applicable to businesses that have operated for two or more years. Online Lenders: If you don’t have any history owning a business, this may be an option for you. It’s relatively easy to get approval. The catch is interest rates are generally very high. Other Finance Options It can help to find a financial lender that’s experienced in working with chiropractors. This may afford you the opportunity to get the best interest rates and deals. You may have noticed a lot of finance options require you to have past experience owning or operating a chiropractic business. Other ways to combat this are to take out a personal loan. While it’s not advised, you can secure a loan against your home, car, or other investments. This option comes with the dangerous risk of losing your possessions in the event you can’t pay your loan. While it’s not difficult to qualify for funding, there are definitely obstacles that can make it a tricky road to navigate. Don’t hesitate to speak with various lenders to fully explore your options given your chiropractic experience and financial situation.
How Much Should Chiropractors Charge for Their Services?
So, how much do you charge your patients? Well, the answer isn’t always easy. We often ask ourselves: “How much are my competitors charging?”, “What’s the normal market rate for my area?”, “Are my prices reasonable?”, and “Are my prices competitive?” The reality is there’s a balancing act to be done between what you’re paying for overhead costs, employee salaries, office supplies, and what you catered for lunch last week. How Much Do Your Services Really Cost? The average overhead in typical chiropractic practice is 50%, according to a national survey. It’s expected this amount will likely increase due to increasing infrastructure and utilities costs. Here’s a simple formula to calculate your costs: Make a list of monthly fixed expenses Determine your number of patient visits per month Determine true patient reimbursement value (with insurance) Divide your overhead cost by average number of visits to get your cost per visit Divide the cost per visit by the average income per visit to get your overhead percentage. Factor Insurance and Additional Costs It’s not uncommon for chiropractors to find themselves working with patients who are either not insured or underinsured. This can make it difficult to forecast certain patient costs, so make sure your patients are up to date on their insurance paperwork to avoid this type of headache. Don’t Forget About Chiropractor’s Fees This can vary by region or state, but chiropractors fees have generally increased over the years to specifically assist underinsured patients. If that’s the case, you should consider using the Discounted Medical Planning Organization (DMPO). This makes it easier for you to see patients who may be underinsured or simply don’t realize their insurance doesn’t cover all of the chiropractic care services they need.
