THE CEO CHECKLIST

KNOW YOUR WORTH

SCOT MORRIS, O.D.

CHECKLIST: BUY/SELL

STRATEGY SESSION:
    Practice value ¹



FINANCE:
    Act on accounts receivable greater than 120 days ²



FINANCE:
    Practice net/practice valuation ³



HUMAN RESOURCES:
    Policy handbook review ⁴



STAFF TRAINING
    Ocular anatomy ⁵



FACILITY/FORMS:
    Chart audit ⁶



CLINICAL PROTOCOL
    Diabetes management ⁷



CLINICAL PROTOCOL
    Infectious ulcers ⁸

1 Do you know what your practice is worth? Whether you are starting out in business or are getting ready to sell, you should always know what your business is worth. Take a few minutes to look at this issue’s columns and “Buying and Selling a Practice” (p.18) for tips on finding and enhancing the value of your practice.

2 As we draw toward the end of the year, take a look at your accounts receivable (AR) that is past due by more than 120 days. Can you really collect any of this?

Talk to your accountant about what you should write off before year’s end, so you don’t end up paying taxes on AR you will never collect. If this value is greater than 1% of your monthly average income, you have an AR or collection problem. Evaluate your copay and deductible collection policy and process. (August’s “Business Strategies” column may help you with this.) Consider that uncollected AR is work you already did and will never get paid for, and, perhaps, make the task a priority. Take 30 minutes.

3 Toward the end of every year is a great time to do a brief practice valuation. Print your balance sheet. Compare it with last year. Is your value growing or shrinking? What steps can you take to improve it?

Remember that what your balance sheet says the practice is worth and what you can sell it for are not the same. Sale price is a function of many things. Practice value is a function of accounting. Take 1 hour.

4 Find your policy handbook, and review its contents. Are there any policies you need to — or want to — change? Do it before the year’s end. Then, inform all staff members. Each member should sign off on these changes. (Be sure to get it in writing should challenges arise down the road.) Don’t have a policy manual? From a legal perspective, it is essential that you build or buy one to serve as reference for all staff on what is, and is not, permitted. Take 3 hours.

5 Pull out that picture hanging on the clinic wall or print one from the web, and have staff training on the eye. Ocular anatomy is pretty amazing, and teaching your staff what you look at every day may help them to understand more of what they do. Take 30 minutes.

6 Time for that quarterly chart audit! Pull three records, and have your partner/associate review them. Do the same for his or her records. Review history components, physical exam and medical decision-making. Did everyone code it right? Did you get paid correctly? If not, what steps can be taken to fix this? Take 1 hour.

7 What is your protocol for examining a patient who has diabetes mellitus (DM)? What must you document? Who do you send this documentation to? Write a protocol, or review p.32 on how to build your DM protocol. Share it with your office. Take 1 hour.

8 What is your protocol for dealing with an infectious ulcer? How do you document it? How do you treat it? When do you see the patient back? When do you refer and to whom? For tips, see p.28. Take 30 minutes. OM