June 2019
 
The Podiatry Billing Experts
 Dear SMB Client,

Welcome to the latest edition of our newsletter, providing you with the latest information on podiatry medical billling.  In this newsletter, we will focus on working together to get claims out the door faster and net working capital.  We hope you find this newsletter helpful.  If you would like to discuss any ideas raised in this issue or suggest a new topic, please call Chad at 1-888-874-5503.  From all of us at SMB Medical Billing, we hope you have a safe and wonderful summer.

Together We Can Get The Job Done!
Cheryl Sands Executive Vice President
At SMB our philosophy is simple - get claims out the door in a timely manner, while making sure we uphold to the highest standards in correct billing methods. By focusing on these two principles, SMB gets your maximum deserved reimbursement for each procedure.

 If you and SMB both follow some simple steps, outline below, our improved workflow environment will increase your profitability and improve communications between your office and SMB.

Send daily remits and proof of patient payments to SMB. SMB receives a majority of the remits online from our clearing house but some remits are not available electronically. To ensure no remits fall through the cracks, please submit the remits to us daily. This will improve your cash flow and float time.

 SMB wants your doctor/patient relationship to blossom. Keep SMB informed as soon as possible about any patient payments. With patients, account balance is always a key item. This will save you embarrassment when SMB tries to collect a patient's balance that was already collected by your office. This keeps the patient from becoming upset or confused about already paid invoices. Also, it results in fewer angry phone calls to your office.

Thank you for all you do to help us at SMB. We truly value our clients. As always, we want to hear from you. Some of our best ideas have come from you! So please keep them coming.


Net Working Capital
Chad
Chad Bixler Business Development
This article starts our series on financial aspects of a podiatry practice.

The most important financial skill of a successful podiatry practice is managing net working capital. Net working capital is defined as the sum of cash and assets that convert to cash within your operating cycle (current assets) minus rent, payroll and other cash requirements within that same cycle (current liabilities). In other words, having the cash to pay your obligations when they are due.

There are three reasons to hold more cash than is required by current liabilities. The first is to enable you to conduct your ordinary business such as payroll or rent. The second is cushion your practice against unforeseen or emergency expenses such as hiring a new nurse or an unexpected repair to your office. The third is to allow you to take advantage of profit-making opportunities that present themselves such as discounts on supplies or adding a new podiatrist to your practice.

Meeting financial obligations also have advantages on the personal level. It helps one to reduce stress and thus reduce the risks of burn-out. It can save you money by obtaining trade credit. It will boost your credit score and enable you to get lower cost credit in the future.
The last term that needs to be examined is float. Float is the time you have funds owed you held up between the time you see a patient and when you are paid by either the insurance company or patient for your services. The more that one reduces float the less net working capital is required to operate your practice and the more financial secure your podiatry practice becomes.

Our next article will discuss how to calculate net working capital for a podiatry practice.



SMB Medical Billing

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