SOME UNSOUND ECONOMICS

As a consultant at Silkin Management Group, I’m always looking through various articles in a variety of publications to stay on top of important matters that could effect Silkin Management Group clients. In doing so, I recently read that a well known international economist, Joseph Stiglitz, speaking at the London School of Economics, said that the United States and England should not ever have their bond ratings be anything other than AAA because “all we do is print money to pay it back.” “The notion of a default is so absurd”.

I was a bit amazed at this statement by such an expert, but it also made me realize that this type of thought, promoted by an international expert is part of why the national and international financial scene is in such a mess. Last I heard there were two major countries in Europe that were on the verge of defaulting on loans.

Here’s one way to look at this: if you have to print money to pay your debts, isn’t that a form of defaulting on a loan? I sure wish I could just print some money to pay my house off but, last I heard, I’d get thrown in jail for counterfeiting if I did that.

At Silkin Management Group, we try to teach our clients sound, rational fiscal policies like, “don’t spend more than you make”, “follow a budget”, “pay off debt”, etc. We teach all the obvious, fiscally sound and conservative measures that anyone with any sense agrees with. Why these sound economic principals wouldn’t apply to a government is beyond me. I guess, if I follow the brilliance of the economic policies of most governments in the world, as well as “world renown economists” like Mr. Stiglitz, I should add “print any money you need to pay your bills” to the list too. Hey, great idea Mr. Stilglitz! I’ll do it as long as you cover my jail time.


Gary Crawshaw
Silkin Management Group Consultant

For more information about what we do at Silkin Management Group, how we help clients with financial basics and other practice management issues, visit our website at: silkinmanagementgroup.com. You can also contact us at: info@silkinmanagementgroup.com or call 800-695-0257.

Help for Small Businesses

President Obama's team is looking at helping small businesses, which would include health care practices, through small business tax breaks. This could be great news for small businesses during these tough economic times.

Baltimore Sun - Don't Derail Little Engine

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Sentiment for small business success is the 2nd worst in 35 years.

Sentiment for small business success is the 2nd worst in 35 years.
Owners of small businesses, which would include health care private
practices, are not optimistic about the economy at this point in time.
This can certainly effect attracting new patients and will require good
business acumen by all private practice owners.


http://www.reuters.com/article/ousiv/idUSTRE50C31Q20090113

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Extending Credit: Tips to Control Your Accounts Receivable

Assess the patient/client's credit worthiness before extending any sort of credit. Have them fill out a "credit application" (see sample in the Form section,) and verify the information supplied.

Always charge for any credit extended, using a monthly percentage or a flat service fee.

When extending credit of any kind, have the patient/client sign an agreement covering the terms of the credit. Ensure that they fully understand and agree to the terms of payment.

Monitor all accounts monthly so that you know who may be delinquent. Take immediate action on any account over 30 days past due. The older an account gets, the more difficult it will be to collect. Call the patient/client right away and make arrangements to bring the account current.

Flag past due accounts by putting a red self-adhesive dot on the upper right corner of the patient/client's chart folder. In this way it is easier for any staff person to see that the patient/client has a past due account and it will be more likely to get addressed.

Each day review the schedule for the next day so that you will be prepared to see any patients/clients whose accounts need addressing. Confer with the receptionist on anyone who will need to be seen after their appointment, or from whom the receptionist would collect over-the counter.

If a patient/client you had planned to collect from has forgotten his/her checkbook or does not have the agreed upon amount, the receptionist should contact the accounts manager or the office manager so that the matter can be addressed.

Patients/clients with delinquent accounts, who are not making an attempt to handle it, should be sent to a collection agency. Again, this should be done as soon as possible before the account gets too old to realistically expect payment.

Ensure that statements are accurate and are being mailed out every month on time and without fail. Utilize appropriate labels on the statements such as: "Thank you for your payment."

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