Pause. Reflect. Act. 

As we prepare to close out 2024, now is a great time for practice owners to reflect on the year that was before we step into the year ahead. 

RSM’s specialist Medical Services team has been privileged to work with many medical practices, pharmacies, allied health businesses, and others in the sector throughout the year – helping them navigate challenges and optimise operations to achieve financial stability and better capitalise on new opportunities.

While several themes have emerged from 2024, three stand out as particularly important to explore in greater detail. Considering these themes and how they may shape your practice moving forward will help you plan effectively for the upcoming year.

1. Challenges with the Medical Benefits Scheme (MBS)

While we did see an increase in some MBS item fees this year, the general consensus is that these were inconsequential. They did little to address the rising cost of delivering GP services, with many doctors caught between a rock and a hard place in deciding whether to drop service levels or increase private billing fees. 

The threat of payroll tax, unless a medical practice meets certain bulk billing thresholds (as set by their state government), is yet another bone of contention that could make or break medical practices already struggling to remain profitable. 

Action for 2025: Regardless of the level of bulk billing in your practice, your doctors must understand the full extent of the MBS and what they are entitled to claim. This includes properly assigning services to codes, and accurate combination billing to maximise returns and reduce the risk of rejected claims. Because the MBS is so vast and complex, consider investing in training from Business for Doctors. Their MBS workshops are full of valuable insights that doctors can apply directly in practice to improve billing efficiency. 

2. Know your numbers

Coupled with MBS challenges, factors such as inflation, interest rates, wage and superannuation increases, utility charges, supply costs, and so on continue to add financial pressure to healthcare businesses. 

Getting by without knowing where you stand financially is no longer realistic. Now, it’s essential to have a complete grasp of: 

• Business expenditure.
• Process efficiencies and inefficiencies.
• Fee structures and pricing strategies.
• Cashflow, budgets and forecasts.

Only by knowing your financial and operational status quo can you achieve any level of confidence that your business is sustainable. 

Action for 2025: With this in mind, commit now to scheduling time every fortnight or month to conduct a business review. Consider onboarding a trusted adviser to help with this, as they will often be able to identify threats and opportunities that you may not know to look for. 

3. Get hands-on with automation and AI

Like the industrial revolution or the internet, it’s clear that AI is here to stay. Many early adopters have transformed their operations and are already achieving greater efficiency, increased productivity and reduced costs. 

Here are a few ways some healthcare businesses are leveraging automation and AI:

• Patient management – automating scheduling and patient reminders.
• Diagnostics – using AI-driven tools to analyse medical data and diagnose conditions faster and more accurately.
• Patient experience – using virtual assistants to respond instantly to patient queries.
• General operations – automating workflows, inventory, billing, and more. 

Some of these changes are simple and cost-effective to implement, while delivering significant benefits for patients, doctors, and the practice itself. However, there are risks involved so it’s important to work with an experienced adviser to implement these tools safely. 

Action for 2025: If you haven’t explored automation and AI, now is the time to do it. Take advantage of the downtime over the holidays to conduct research and develop a strategy on how you might integrate these technologies into your practice.

Working with specialist advisers

RSM’s specialist Medical Services team is excited to continue supporting many more businesses in the healthcare sector in 2025, just as we have done this year. 

We understand the challenges facing our healthcare industry, including  population growth an ageing populace and regulatory hurdles. Our goal is to help ensure your long-term sustainability for the well-being of our communities.

 As we all know, a $44 GP consultation is far more cost-effective for the government than the high expense of a hospital admission. That isn’t even considering the benefits to long-term patient care outcomes. 

So, whether you would benefit from having an objective sounding board, a comprehensive review of operations, or expert insights to optimise your practice, we would like to help you make 2025 your most successful year yet.

For a free initial consultation, or to learn more about RSM’s Medical Services team, contact Peter Nicol – Partner, Medical Services – on 02 6057 3000.