If you find yourself staring at last month's profit and loss statement and shaking your head, I offer this Pro Tip. . .
Aside from controlling payroll via "cutting dead weight" or finally hiring a Virtual Assistant (we covered this topic previously so I'll give it a rest today), one of the easiest ways to improve profitability in private practice is to reduce wasteful spending without lowering quality.
The mistake many practices make. . . Assuming saving money means buying cheaper products or switching to lower-quality vendors. It doesn’t.
Instead, take a deep dive into what you’re already paying for:
- Review supply pricing annually — You may be paying outdated (higher) pricing simply because no one asked for updated rates (or you aren't taking advantage of your Preferred Vendor discounts as a Pinnacle Practice- especially on big ticket items like malpractice coverage, DME, medical grade products and orthotics, payroll and marketing services, RSWT and more).
Suggestion: If you are treating patients less than full-time or plan to move to an abbreviated schedule, discuss the option of switching to a part time provider malpractice policy. Pinnacle members, use your contact John Kortum at Hilb Healthcare to make sure you are maximizing savings (regardless of your patient schedule) john.kortum@hilbgroup.com
- Negotiate with trusted vendors — Many vendors will price match, offer preferred pricing, or create custom tiers for loyal practices—but only if you ask. Again, Pinnacle practices, make sure you are taking advantage of special pricing!
- Standardize products — If every provider orders different brands for the same purpose, costs quietly spiral.
- Track usage and waste — Overordering, expired products, and duplicate inventory quietly drain profits.
- Review service contracts — Merchant processing, phones, EMR add-ons, shredding, payroll, and medical waste agreements are often overlooked opportunities for savings.
Here’s something many practice owners miss: sometimes the best ROI comes from investing in the right resources rather than cutting expenses.
Programs like Pinnacle Practice Achievement's Practice Engagement Program often pays for itself by helping practices identify inefficiencies, strengthen systems, negotiate smarter, access preferred vendor opportunities, and avoid costly operational mistakes. One overlooked contract, poor workflow, or missed savings opportunity can cost far more than the investment in expert guidance.
The goal isn’t simply to spend less—it’s to spend smarter.
High-performing practices maintain quality while eliminating waste and maximizing the value of every dollar spent.
Ask yourself: If we had to reduce expenses by 10% tomorrow without affecting patient care, where would we start? That answer usually reveals where hidden waste already exists.
Bottom line: Smart practices know the difference between an expense and an investment. The right vendors, systems, and support can improve quality and profitability at the same time.
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