SEP 24, 2020
Negotiate Vendor Contracts to Boost COVID-19 Recovery
As ophthalmic practices continue down the road to recovery, focusing on overhead and improving the bottom line is a priority. Many strategies for efficiency can reduce overhead along with revisiting all practice expenses. Negotiating vendor contracts and requesting reduced costs is another strategy that may prove to be successful.
- Types of contracts to negotiate may include:
- Insurance policies
- Telephone lines and systems
- Information technology support
- Janitorial services
- Facility services (e.g., floor mats, gardening, maintenance)
If the current vendor is unwilling to negotiate, consider requesting bids from new vendors. Due to the impact of the pandemic, many businesses are motivated to gain new customers.
As the contracts are reviewed, consider if any services can be eliminated, consolidated or replaced with a new solution. A zero-based budget approach, looking at the practice as a startup and committing to expenses for the business you have currently, as opposed to the business you had last year, will make a financial impact.
To discover more on focusing on overhead review Module 2: Focus on Realizing the Most Yield from the Limited Operation Practice. This module is a component of AAOE® Reboot Your Practice: Post-COVID-19 Recovery Roadmap for the Ophthalmic Practice.