Managing Cash Flow in Private Practice

Private practice can suffer from "lumpy" cash flow. You provide the service today, but Medicare or Health Funds might not pay for 3-14 days. Meanwhile, staff wages and rent are due.

1. Collect the Gap on the Day

This is non-negotiable. Always take the patient's gap payment via EFTPOS immediately after the consult. Sending invoices later results in a 40% reduction in collection rates and increases admin time.

2. Tyro/HICAPS Integration

Use integrated terminals that claim the rebate on the spot. The money hits your bank account faster (often next day), smoothing out your cash flow curve.

3. Asset Finance for Equipment

Don't drain your cash reserves to buy a $30,000 laser. Use asset finance. The interest is tax-deductible, and you keep your cash buffer for operational expenses.