Boosting a Medical Practice’s Finances and Confidence

Introduction

A respected medical professional who owns  OBGYN of North Miami was facing a very common financial challenge: exorbitant credit card processing fees. His previous provider, recommended by his bank, had locked him into a contract with excessively high rates, taking from his practice's revenue. Florida Card Services (FCS) intervened to provide a solution that dramatically reduced these costs and improved the doctor's financial health.

Step 1: Identifying the Problem

This physician was experiencing a substantial headache due to excessive credit card processing fees charged by his previous provider. The doctor was concerned about the negative impact these fees were having on his practice's profitability.

Step 2: Understanding the Client's Needs

The doctor's primary need was to significantly reduce credit card processing fees to improve the financial performance of his practice. He also sought a solution that would not negatively impact patient satisfaction.

Step 3: Presenting the Solution

FCS presented two options: the traditional approach of securing a lower processing rate and the cash discount model, which shifts the burden of card processing fees to customers. It turned out that not only was the fee being charged to the customer, but the merchant was being charged as well, in essence, double-charging the OBYGN. Given the unfavorable contract terms with the previous provider, FCS offered to cover the cancellation fee as a demonstration of commitment to the doctor's success.

Step 4: Implementing the Solution

After careful evaluation, the doctor opted for the cash discount model. FCS implemented the necessary changes to the doctor's payment system to facilitate the new approach.

Step 5: Measuring Results

Within a short period, this physician was able to accrue substantial savings, reducing credit card processing fees by $800 per month. This represented a significant improvement in the practice's financial performance.

Step 6: Analyzing the Impact

By implementing the cash discount model, this OBGYN facility was able to retain a significant portion of revenue that would have otherwise been lost to excessive processing fees. This freed up financial resources for reinvestment in the practice, such as new equipment, staff training, or marketing initiatives.

Step 7: Demonstrating ROI

The implementation of the cash discount model yielded a substantial return on investment for this medical practice. The monthly savings of $800 represented a significant portion of the practice's revenue, allowing for reinvestment in areas that enhance patient care and practice growth.

Step 8: Building a Long-Term Partnership

FCS's commitment to the doctor's success extended beyond the initial implementation. The company continued to provide support and guidance to ensure the ongoing effectiveness of the cash discount model. This partnership has fostered a strong relationship built on trust and mutual benefit.

Conclusion

The case of the OBGYN facility highlights the significant impact of excessive credit card processing fees on medical practices and the effectiveness of the cash discount model in mitigating these costs. By partnering with Florida Card Services, the doctor achieved substantial financial savings, improved practice profitability, and positioned the practice for long-term success. This case study demonstrates FCS's ability to provide tailored solutions for businesses in the healthcare industry.

Disclaimer: For privacy and confidentiality purposes, names have been omitted