The li£e-blood of your practice

If cash is king, cash flow is his queen, so it is vital you get your billing and collection in good order to have a successful private practice. Findlay Fyfe shows how.

So what exactly is cash flow and why is it so important? The short answer, of course, is that cash flow is the amount of money coming in to a business or practice and the amount of money going out.

Think of it as a water tank: water comes in at the top and drains out the bottom. So to keep the tank nice and full; you want more coming in than going out. End of article, right? Well, not really….

Cash flow

Cash flow is the life-blood of your practice and comes from your private work. This could include private medical insurance companies like Bupa and AXA PPP, self-payers including excesses, co-share payments and shortfalls, NHS Choose and Book work, medico-legal and finally from embassy work, mainly in London.