Healthcare Bookkeeping & Medical Practice Accounting

Healthcare bookkeeping requires specialized knowledge of medical billing systems, OHIP submission requirements, overhead allocation methodologies for multi-physician practices, and complex regulatory compliance requirements unique to the healthcare sector. Medical practices face distinct challenges including managing accounts receivable from multiple payers (government health plans, private insurance, and patients), tracking billable encounters versus actual payments, handling complex physician compensation arrangements, and managing stringent privacy requirements under PHIPA.

Our healthcare bookkeeping services are specifically designed to address these industry-specific challenges. We understand that medical practices need real-time visibility into revenue per provider, accurate tracking of OHIP billing and payments, proper allocation of shared overhead across physicians, and compliant management of patient billing and collections. Unlike generic bookkeeping providers, our team has deep expertise in healthcare accounting including medical practice overhead allocation, physician compensation modeling, medical receivables management, and healthcare regulatory compliance.

Healthcare businesses also deal with complex revenue cycles from patient visits through insurance claims to final payment, with multiple touchpoints that require careful tracking and follow-up. Our healthcare accounting expertise ensures that practices maintain accurate cash flow forecasts, optimize billing processes, reduce accounts receivable aging, and make informed decisions about practice growth and physician recruitment based on financial performance data rather than gut instinct.

OHIP billing and medical receivables management represent critical components of healthcare financial success. Our healthcare bookkeeping system tracks every billable encounter from the moment a patient visits through claim submission, payment processing, and accounts receivable management. We understand that delayed or incorrect billing can significantly impact practice cash flow, and our proactive approach ensures maximum reimbursement while minimizing aging receivables.

We manage the entire OHIP billing process including claim submission verification, error resolution, rejected claim resubmission, and payment reconciliation against expected amounts. Our system tracks billing codes used, identifies underpayment patterns, monitors payment timing against provincial benchmarks, and flags accounts requiring follow-up. This comprehensive approach ensures that practices capture all legitimate revenue while identifying and resolving billing problems quickly.

Beyond OHIP, we manage private insurance billing, worker compensation claims, motor vehicle accident claims, and direct patient billing. Our medical receivables management services include insurance verification before services, pre-authorization tracking, coordinated benefits management, and patient payment plans for large balances. We understand the nuances of different payer requirements and ensure that claims are submitted correctly the first time to minimize payment delays.

Our accounts receivable aging reports identify overdue accounts by payer type, track reasons for non-payment, and prioritize collection efforts based on recoverability and dollar value. We help practices implement patient payment policies that balance revenue collection with patient relationships, reducing bad debt write-offs while maintaining high patient satisfaction scores.

Multi-physician practices require sophisticated overhead allocation and physician compensation systems that fairly distribute practice expenses while incentivizing productivity and patient care quality. Our healthcare bookkeeping services implement comprehensive overhead allocation methodologies that consider physician billings, patient encounters, clinical hours, resource utilization, and practice investment contributions.

We understand that different practice models require different approaches. For fee-for-split models, we allocate overhead based on relative billings or revenue generation. For sessional models, we track actual patient care hours and allocate overhead on a time basis. For hybrid models combining salary with production bonuses, we manage complex calculations that ensure fair compensation while motivating practice growth. Our physician compensation reports provide complete transparency, showing each physician's revenue generation, direct costs, allocated overhead, and net contribution to practice profitability.

Overhead allocation considers all practice expenses including rent, staff salaries, equipment leases, supplies, insurance, and administrative costs. We use rational allocation bases that reflect each physician's actual resource utilization rather than arbitrary percentage splits that can create physician resentment or compensation disputes. Some overhead items like dedicated nursing staff get allocated directly to specific physicians based on time spent, while shared expenses like reception staff get allocated based on patient volume or encounter count.

Our practice financial reporting includes physician-level profit and loss statements, productivity analysis comparing billings across providers, patient demographic analysis, and referral pattern tracking. Practices can identify which physicians generate the highest revenue, which have the best patient retention, and which may need additional support or marketing resources to build their patient panel.

Healthcare practices require specialized financial reporting that goes beyond standard income statements and balance sheets to provide insights into practice operations, physician productivity, revenue cycle management, and profitability trends. Our healthcare financial reporting suite includes physician-level performance analysis, revenue by payer type analysis, procedure/service profitability analysis, overhead utilization reports, and cash flow projections that account for seasonal variations and payer payment cycles.

Our productivity metrics include patients seen per day, billable encounters per hour, average revenue per patient visit, procedure mix analysis, and no-show/cancellation tracking. These metrics help practices optimize scheduling, identify capacity for new patient growth, and evaluate physician productivity objectively. We benchmark performance against provincial averages and practice historical data to identify trends and opportunities.

Revenue cycle management reports track claims from submission through payment, identifying bottlenecks in the billing process, measuring clean claim rates, monitoring days in accounts receivable, and quantifying revenue lost to claim rejections or denials. These reports help practices optimize billing workflows, reduce administrative costs, and accelerate cash flow. Our aging reports categorize receivables by payer type and identify accounts requiring escalation or write-off consideration.

For practice valuation and growth planning, we provide patient panel analysis including patient age distribution, referral source tracking, patient retention rates, and revenue per patient calculations. These metrics help practices understand their patient base, evaluate marketing effectiveness, and project future revenue growth. For practices considering expansion or additional physician recruitment, our financial modeling includes revenue projections, capital requirements, and return on investment analysis.

We also generate specialized reports for banks and lenders including practice historical financial performance, physician contract summaries, real estate holdings assessment, and equipment inventories. These reports support practice financing applications, equipment leasing, and practice acquisition transactions.

Medical practices and clinics manage significant inventories of supplies, medications, and medical devices that require careful tracking to ensure availability while minimizing carrying costs and expiration waste. Our healthcare bookkeeping services include comprehensive inventory management that tracks supplies from purchase through usage, identifies cost-saving opportunities, and ensures that practices maintain adequate stock levels without over-investing in inventory.

We implement inventory tracking systems that categorize supplies by type (medications, disposables, office supplies, equipment), track usage rates by procedure or physician, monitor expiration dates for time-sensitive medications, and automate reordering based on predefined stock levels. Our inventory management reports identify slow-moving items that tie up capital, fast-moving items requiring frequent reordering, and cost variations across suppliers that present negotiation opportunities.

For practices dispensing medications, we track medication purchases, dispensing records, inventory shrinkage, and cost recovery through patient billing or insurance claims. We ensure that medication inventory records match physical counts, investigate discrepancies promptly, and maintain detailed records that support regulatory audits. Our system tracks lot numbers for recall purposes and ensures proper documentation of all medication transactions.

Supply chain optimization includes analyzing supplier pricing across multiple vendors, negotiating bulk purchasing discounts with other practices, evaluating just-in-time delivery versus safety stock requirements, and assessing the cost-benefit of inventory consignment arrangements. We help practices reduce supply costs without compromising patient care quality or creating stock-outs that disrupt operations.

For dental, veterinary, and specialist practices with significant equipment investments, we track equipment usage by procedure, calculate per-procedure equipment costs, and evaluate whether equipment purchases generate sufficient return on investment. This analysis helps practices make informed decisions about equipment leasing versus purchasing, when to upgrade equipment, and how to price procedures to recover equipment costs appropriately.

Professional healthcare bookkeeping provides medical practices with the financial intelligence needed to significantly improve profitability through better operational decisions, optimized billing processes, and strategic practice growth. Many healthcare providers focus exclusively on patient care while neglecting practice financial management, missing opportunities to increase revenue, reduce costs, and build practice value.

Our physician productivity analysis identifies top-performing providers and enables practices to understand what drives their success. By analyzing patient volume, procedure mix, billing efficiency, and patient satisfaction scores together, practices can develop best practices that all physicians can adopt. We've seen practices increase revenue by 15-20% simply by optimizing scheduling templates based on peak productivity times and ensuring appropriate patient mix across providers.

Revenue cycle optimization delivers immediate profitability improvements. Our billing process reviews identify claim rejection patterns, payer-specific requirements causing delays, and underpayment issues. By addressing these problems systematically, practices can reduce days in accounts receivable from 60+ days to under 30 days, significantly improving cash flow and reducing bad debt write-offs. Better cash flow reduces practice reliance on credit lines and financing, saving interest costs.

Overhead analysis often reveals significant cost-saving opportunities. We benchmark practice overhead against industry standards by practice size and specialty, identifying areas where expenses are excessive. Common savings opportunities include optimizing staff scheduling based on patient volume patterns, renegotiating supplier contracts, reducing wasted supplies through better inventory management, and eliminating unnecessary software subscriptions or services. Many practices find they can reduce overhead by 5-10% without compromising patient care quality.

For practices considering growth, our financial modeling evaluates new physician recruitment, adding new service lines, expanding to additional locations, or acquiring competitor practices. We project revenue, expenses, and profitability for different growth scenarios, helping practice owners make informed investment decisions. Practices that leverage financial data for strategic planning grow faster and more profitably than those relying on intuition.

Ultimately, professional healthcare bookkeeping transforms practice financial management from reactive to proactive, enabling data-driven decisions that increase profitability while supporting better patient care. Providers can focus on medicine while knowing their practice finances are being managed expertly.