Overhead Reduction Services

The following article was published in the Atlanta Hospital News in July, 2009.

In my last column, I shared tips on saving money by better utilizing your time. This month’s column provides a potpourri of tips for saving money through smart purchasing habits. Look for more in-depth columns on several of these expense areas in future issues. Check out past issues for money saving tips on telecommunications, merchant processing, and check verification and guarantee.

Office Supplies: Shop online. You’ll often find great deals and free shipping. You’ll save travel time and gas. Purchase store brands, and buy in bulk. Enroll in loyalty programs which provide immediate discounts at check-out and money-saving coupons for future purchases.

Comparison Shop: Use online websites such as Amazon, Shopzilla, and Bizrate to compare prices.

Consider reliability: Maintenance and repairs can add considerable expense to purchases. Reduce these costs by purchasing products with good reliability ratings. Check independent resources such as Consumer Reports. Ask colleagues for recommendations.

Centralize purchasing: Practices often find themselves with shortages in some items and surpluses in others. This often occurs when too many employees are permitted to make purchases. Authorize select employees to make purchases. Maintain an accurate inventory of items so that those making purchases buy only those items the practice really needs.

Warehouse Clubs: Purchase equipment, supplies, and services at low prices from warehouse clubs such as Costco, Sam’s Club, and BJ’s Wholesale Club.

Mailing / Shipping: Use both the post office (USPS) and just one shipper (e.g., FedEx or UPS). Using just one shipper allows you to more easily reach billing volumes that make you eligible for rate discounts. Consider eliminating postage meters if not really needed. Postage meters may only be leased - not purchased – thus adding monthly expenses to the practice. Obtain free shipping boxes and labels from the post office. Take advantage of shipper’s free software for automating your shipping / mailing process. Use an accurate digital scale to eliminate wasting money by “over-stamping” mail. Use companies like Stamps.com to purchase postage online and print stamps on your printer. Reload postage meters via the phone rather than taking the meter to the post office.

Storage Facilities: Offsite storage is expensive. Get rid of unnecessary items and eliminate or downsize offsite storage space. Shred records that are no longer needed – both in the office and offsite. Digitally scan and store the records you need to retain.

Office Furniture: Purchase good-quality used or refurbished furniture. Used furniture often can be purchased at huge discounts. Look for good buys on Craig’s list or from used furniture dealers. Check out the web for local retailers who display their inventory. This makes shopping easier.

Waste Management: Audit bills regularly. Some vendors are known to raise prices fairly frequently. Consider using a consultant with access to wholesale pricing.

Paper Usage: Reduce paper consumption by printing on both sides (duplex). Establish a “recycle” culture in your practice. Receive faxes electronically through services like MaxEmail and E-fax, and print only essential faxes. Consider converting to Electronic Medical Records.

Professional Association Discounts: Check into discounts and promotions offered by organizations such as the Medical Association of Georgia, Medical Association of Atlanta, local practice manager groups (e.g., Dermatology Managers Association), and specialty medical associations (e.g., Georgia Society of Ophthalmology).

Professional Travel: Purchase tickets online to eliminate fees charged by airlines for ticketing by phone. Take advantage of low fares available only on airline websites. Bid on Priceline to earn deep discounts on hotel rooms. Consider using Priceline for air travel when you have flexibility in travel times. Join hotel, car, and airline loyalty programs to earn points and discounts. Stay at hotels whose loyalty programs offer multiple travel partners (i.e., other hotels, airlines, car companies) to increase your options when redeeming points.

Checking Accounts: Banks offer a variety of checking accounts (e.g., no-fee with a set minimum balance, or $15.00 up to 100 deposits and checks, or $30 for unlimited deposits and checks). Negotiate for free checking. If you can’t obtain free checking, limit your monthly fees as much as possible. Ensure that you are not “over-buying” the number of monthly transactions (deposits and checks) or “under-buying” - and then paying excess transaction charges for “overage”.

These are just a few of many tips for reducing practice expenses. What tips can you offer? Please call or email your tips to me for inclusion in future articles.

Jeffry Finkel is the President and owner of Overhead Reduction Services. Jeff may be reached at (404) 995-9112 or Jeff@OverheadReductionServices.com. Visit his website at www.OverheadReductionServices.com.