UBCNews - Business - Cash Not Flowing? Strategic Financial Planning Can Turn Tides For Healthcare

Episode Date: March 12, 2026

Are there days when the cash flow at your medical practice feels a little more like a trickle? If so, you're not the only one. Healthcare providers across the country are facing tremendous financial pressures. This not only impacts your business - it affects the care you are able to offer your patients, too. But you don't have to be entirely dependent upon denials and declining reimbursement rates. There are strategies you can enact at your practice to improve your cash flow and increase your profitability. The financial advisors at K-38 Consulting explain. Medical practices across the country are facing mounting financial challenges in 2026, as their operating expenses continue to climb while reimbursement rates drop. A whopping 92 percent of medical group leaders reported increased operating costs in 2024, according to polling from Physicians Practice magazine, and numbers have only risen from there. There's no specific facet of the industry to blame, with almost every bill simply taking a larger bite than in the past, according to the Healthcare Financial Management Assoction. As of December 2025, labor costs were up 4.2% year over year and supply costs rose more than 12%. Drug costs rose 6.1%, combined with an 11 % jump the previous month. IT costs can vary widely depending upon the practice, but they never seem to go down. None of them do. At a time when more money is going out, less is coming in. Claim denial rates hit 11.8 % in 2024, adding pressure to already-strained revenue cycles. Insurers are tightening their guidelines at the same time staffing shortages are leading to more administrative mistakes. Some payers are turning to AI review systems, which seem to be churning out more denials than human reviewers typically do. What's more, claims that are approved seem to be moving slower, thanks to the market's quiet shift to fewer and fewer insurers, according to Cloud RCM Solutions. More than 53 percent of claims are unpaid or underpaid, causing many practices to balance rising wages and supply costs with lagging payments. Some are sinking; others are drowning. You may not be able to seek a discount on your rent or electric bill, but it is possible to offset and increase your revenue with proactive adjustments, according to a new guide from K-38 Consulting. The company offers healthcare providers financial expertise, and recommend practices take these and other steps to capture money they're often already due: Establish a same-day payment requirement, preferably collecting before the appointment takes place. Practices have a 50% lower chance of collecting payment when patients leave without paying. Appeal denied claims. Two out of three denied claims are typically recovered, but fewer than 1 percent are ever appealed. Introduce new services like telemedicine, wellness programs, or specialized services. These help to diversify your revenue streams and can attract new patients to your practice. Renegotiate your insurance contracts. You can only renegotiate every 1-3 years, but annual reviews are a best practice to keep pace with inflation and other cost increases. Even within the same market, commercial rates can vary 20-30%. Try to initiate renegotiation between 6 and 9 months before expiration. Medical inflation and other factors mean health care costs aren't likely to decrease anytime soon. However, you can take proactive steps to increase your cash flow and boost your revenues to keep operations stable for your staff and your patients. After all, when you win, they win. For more expert insights, visit the link in the description. K-38 Consulting City: Raleigh Address: 3809 La Costa Way Website: https://k38consulting.com/ Phone: [phone] Email: [e-mail]

Are there days when the cash flow at your medical practice feels a little more like a trickle? If so, you're not the only one. Healthcare providers across the country are facing tremendous financial pressures. This not only impacts your business, it affects the care you are able to offer your patients too. But you don't have to be entirely dependent upon denials and declining reimbursement rates. There are strategies you can enact at your practice to improve your cash flow and increase your profitability. The financial advisors at K-38 consulting explain. Medical practices across the country are facing mounting financial challenges in 2026, as their

operating expenses continue to climb while reimbursement rates drop. A whopping 92% of medical group leaders reported increased operating costs in 2024, according to polling from Physicians Practice magazine, and numbers have only risen from there. There's no specific facet of the industry to blame, with almost every bill simply taking a larger bite than in the past, according to the healthcare financial management as auction. As of December 2025, labor costs were up 4.2% year over year, and supply costs rose more than 12%. Drug costs rose 6.1% combined with an 11% jump the previous month. IT costs can vary widely depending upon the practice, but they never seem to go down. None of them do. At a time when

more money is going out, less is coming in. Claim denial rates hit 11.8% in 2024, adding pressure to already strained revenue cycles. Insurers are tightening their guidelines at the same time staffing shortages are leading to more administrative mistakes. Some payers are turning to AI review systems, which seem to be churning out more denials than human reviewers typically do. What's more, claims that are approved seem to be moving slower thanks to the market's quiet shift to fewer and fewer insurers. According to cloud RCM solutions, more than 53% of claims are unpaid or underpaid. causing many practices to balance rising wages and supply costs with lagging payments.

Some are sinking, others are drowning. You may not be able to seek a discount on your rent or electric bill, but it is possible to offset and increase your revenue with proactive adjustments, according to a new guide from K-38 consulting. The company offers health care providers financial expertise and recommend practices take these and other steps to capture money they're often already due. Establish a same-day payment requirement, preferably collecting before the appointment takes place.

Practices have a 50% lower chance of collecting payment when patients leave without paying. Appeal denied claims. Two out of three denied claims are typically recovered, but fewer than 1% are ever appealed. Introduce new services like telemedicine, wellness programs, or specialized services. These help to diversify your revenue streams and can attract new patients to your practice. renegotiate your insurance contracts. You can only renegotiate every one to three years, but annual reviews are a best practice to keep pace with inflation and other cost increases. Even within the same market, commercial rates can vary 20 to 30%. Try to initiate renegotiation between six and nine months before expiration.

Medical inflation and other factors mean health care costs aren't likely to decrease anytime soon. However, you can take proactive steps to increase your cash flow and boost your revenues to keep operations stable for your staff and your patients. After all, when you win, they win. For more expert insights, visit the link in the description.