MAR 20, 2020
Coronavirus Impact: Financial and Employment Considerations
The coronavirus pandemic creates financial and employment challenges for ophthalmic practices. Academy and AAOE staff and members share guidance and resources.
What is the best program for you? (PDF), courtesy Paychex
Families First Coronavirus Response Act (FFCRA)
Coronavirus Aid, Relief, and. Economic Security (CARES) Act
Rent and Mortgage Payments in the Time of COVID-19
- Transition non-clinical employees to remote work to maintain practice productivity.
- When making decisions to reduce staff schedules, layoffs or furloughs:
- Provide information on available community resources and government programs (e.g., unemployment) with your staff.
- Investigate whether furlough status will allow for eligibility for unemployment in your state.
- Consider employee health insurance implications.
- Cross-train staff to work in key departments to minimize reduction in hours.
- Remember that protocols related to time off or sick days may need revision to include special exceptions.
- Decisions related to Human Resources should be reviewed for compliance with all federal and state laws. Consult your HR expert or federal and state labor websites for specific recommendations.
Paid Leave, Unemployment and Wages
Practice Financial Considerations
Identify key practice functions that maximize your practice’s cash flow:
- Insurance, accounts receivable, billing and coding and denied claims are considered a priority.
- Consider revised patient collection protocols due to financial impact. For example, cease collection calls or letters to patients.
- Focus attention on outstanding insurance claims to increase revenue.
- Continue to send claims and collections to insurance carriers to maintain business cash flow.
- Continue to send statements.
- Review all practice overhead for any expenses that could be eliminated, even if temporary, such as:
- Reduce office supply inventory.
- Reduce clinic staffing to match patient volume.
- Eliminate any automated functions and assign to an employee (i.e., appointment confirmations).
- If possible, delay any accounts payable invoices.
- Identify any leniency from vendors (e.g., extended terms, discounts).
- Identify maintenance fees that may be renegotiated with vendors.
- Put capital purchases on hold.
- Adjust inventory levels of all clinical supplies and medications based on expected patient volume.
- Retina practices should consider anti-VEGF medication volume and current inventory and supplies if applicable. Anticipate that many injection patients won’t come to the practice due to comorbidities.
- Retina practices should also monitor availability of inventory and necessary supplies and contact local health departments for any assistance.