Today’s medical billing company owners are under unprecedented pressure to deliver more value with fewer resources while navigating ongoing regulatory change. For many, it’s a tough time to own and operate a successful business, and the year ahead may not provide any relief. In fact, if anything, times may become tougher. Here’s why:

While economic uncertainties can be daunting, the good news is this: Medical billing company owners can take proactive steps to safeguard their business during potential economic downturns. Consider the following 9 strategies for financial resilience in business.

Consider adding new services to your portfolio to improve financial resilience in business. Examples include coding, patient balance follow-up, patient financial counseling, or prior authorization support. Identify customer pain points and then offer specialized support either temporarily or on a long-term basis. 

Consider expanding your medical billing company into adjacent markets such as dental, ambulatory surgery, behavioral health, or other specialties. 

During times of economic hardship, providers want to know their revenue is protected. Embracing a compliance-driven marketing message that distinguishes your business from others can help you land new contracts and retain existing ones. 

During tough economic times, it’s important to position your firm as a stable, tech-enabled, compliance-first partner.

Start saving money now for a financial buffer that includes 3 to 6 months of operating expenses to cover payroll and technology subscriptions if provider payments lag. 

In addition to locking in longer-term contracts (i.e., 12–24 months) that promote predictable revenue and improve business cash flow, medical billing company owners can consider shifting away from "percentage of collections" to a "per-claim" rate paid within 15–30 days of the invoice date. 

However, remaining flexible is also important particularly with long-term clients that may be struggling temporarily. As part of a plan for financial resilience in business, sometimes it’s better to create short-term payment plans than lose those medical practice clients entirely. 

During times of economic hardship, it’s important to review clearinghouse and IT contracts as well as software and services subscriptions that may no longer be necessary due to automation. When possible, automate aggressively to lower the cost to collect. The ability to leverage AI-powered robotic process automation for repetitive tasks (e.g., claim scrubbing, payment posting, denial prediction, and EOB reconciliation) is critical. 

However, it’s equally important to ensure the technology provides a robust return on investment (ROI). Without a clear ROI — and the metrics to support it — it may be time to explore new options.

While it may be tempting to cut back on continuing education and training during an economic downturn, that may be one of the worst things medical billing company owners can do. Why? Cutting back not only erodes your competitive edge, but it also undermines innovation and efficiency, increases risk, and damages morale and retention. 

Instead, invest in personal development training to become a savvier businessperson and more effective leader. For your staff, invest in compliance training on topics like HIPAA, AI literacy, or analytics. 

Also, monitor and educate your staff about important state and federal policies that could alter revenue projections and workflows quickly. Finally, consider cross-training staff so they can shift between clients or functions, allowing you to scale up or down quickly.

To promote financial resilience in business, communicate proactively about policy updates, denial trends, and technology you’re adopting to improve accuracy and reduce costs for your clients. Ensure clients understand the ROI of working with your medical billing company. Run reports regularly to demonstrate collection rates, reduced denials, and turnaround times. 

Also, offer additional analytics and process improvement strategies to become an indispensable advisor, not just a vendor. Another idea is to offer consultative support to clients implementing autonomous coding.

Economic downturns may open doors to acquiring smaller billing companies or partnering with struggling medical practices that need revenue cycle management support. Remaining open to these opportunities helps promote financial resilience in business.

During economic downturns, the goal isn’t just to survive — it’s to emerge stronger and more valuable to the providers who rely on your company for financial stability. Becoming a compliance-driven, relationship-focused medical billing company will help medical billing company owners navigate uncertain times ahead with greater ease.

Explore how Tebra's integrated platform empowers billing companies to deliver measurable ROI, strengthen client retention, and position your business as an indispensable strategic partner. Schedule a free, personalized demo today.