Year-End Checklist for Medical Practice Owners: Ensuring Success into the New Year
As a medical professional business owner, there are several key tasks you should undertake at the end of each calendar year to ensure your business is organized, compliant, and prepared for the year ahead. Here are ten:
Financial Review and Tax Preparation: Analyze your financial statements to understand your practice's financial health. It's crucial to prepare for tax filing, including organizing receipts, reviewing potential deductions, and consulting with a tax professional if necessary. (If you are a Fortune Club member, you can access a list of our preferred partners, including for tax preparation, but logging into the Fortune Club Portal.)
Compliance Check: Ensure your practice remains compliant with all relevant healthcare laws and regulations, such as HIPAA and OSHA. This might involve reviewing patient privacy policies and ensuring all staff are properly trained. If you haven’t done a training yet on these policies, now would be a good time to set one up. And if you hold the training at your house, you can take advantage of the Augusta method tax-savings strategy. And if you haven’t had an annual meeting yet for your business, hold one, and make sure you take and store your minutes from that meeting.
Insurance Policy Review: Reevaluate your insurance policies, including malpractice insurance, to ensure adequate coverage. It's a good time to check for any changes in your practice that might require updates to your policies. Make sure any independent contractors working for you have adequate coverage, too, and have named you and your practice as additional insureds.
Inventory Management: Assess your inventory of medical supplies and equipment. Plan for any necessary purchases or upgrades in the upcoming year. If you make the purchase in this tax year, that will reduce the amount of business profit reflected on your personal tax returns. (Note: this strategy works only for purchases you are going to make anyway—if you are spending money just to save in taxes, it’ll be a net loss.)
Employee Assessments and Training: Conduct performance reviews for your staff and identify any training needs. This is also a good time to review staffing levels and consider hiring if your practice is growing. You will also want to make sure your employee manual is up-to-date with all the new laws that go into effect at the beginning of next year.
Patient Records Update: Ensure all patient records are up-to-date and securely stored. This might include archiving old records and updating any digital systems.
Technology and Software Updates: Evaluate your technology and software systems for any needed upgrades or replacements. This includes electronic health record (EHR) systems, billing software, and cybersecurity measures.
Goal Setting and Strategic Planning: Reflect on the past year's achievements and setbacks. Set goals for the coming year and develop a strategic plan to achieve them. This might involve expanding services, improving patient satisfaction, or increasing efficiency.
Networking and Professional Development: Review your professional network and consider attending conferences or joining professional organizations in the coming year to stay connected and informed. Make sure you have all your required CEs for the year.
Personal Health and Well-being: Lastly, as a medical professional, it's essential to prioritize your own health and well-being. Reflect on your work-life balance and make adjustments as needed to ensure you can continue providing the best care to your patients.
These steps are crucial for maintaining the health and success of your medical practice. Regularly attending to these aspects at the end of each year can set a solid foundation for the year ahead.