Running a medical practice is about more than caring for patients. Behind the scenes, physicians and administrators face unique accounting challenges that can directly affect profitability, compliance, and long-term growth. From navigating insurance reimbursements to managing expensive equipment purchases, Central Valley medical practices must stay financially sharp for the remainder of 2025.
At DeMera DeMera Cameron, we have decades of experience supporting healthcare providers. As Fresno finance experts, here are some financial considerations and strategies to strengthen both your medical practice and your peace of mind this year.
Accuracy Is Everything For Revenue Cycle Management
One of the most common challenges in medical practices is cash flow disruption caused by delayed or denied reimbursements. Claims must be submitted with accurate coding, thorough documentation, and consistent follow-up. Even small errors can delay payments or lead to compliance issues.
What you can do for your practice is implement regular audits of billing and coding practices, use medical software that integrates with your accounting system, train staff on insurance claim submission best practices, and monitor accounts receivable weekly, not just monthly
Managing Rising Overhead Costs
Staffing, rent, malpractice insurance, and medical supplies continue to climb in cost. Without proactive management, overhead can quickly erode margins.
Consider negotiating supplier contracts and evaluating bulk purchasing. Additionally, explore leasing versus purchasing equipment depending on your practice’s cash flow. Opt for regularly benchmarking overhead against industry averages and evaluating staffing models to ensure productivity aligns with payroll.
Equipment and Depreciation
Medical practices often invest in costly diagnostic tools and equipment. These purchases, however, come with tax opportunities.
- Section 179 Deduction: As of this year, practices can deduct up to $2,500,000 in qualifying equipment purchases immediately under Section 179.
- Bonus Depreciation: Offers additional upfront deductions for larger investments, easing cash flow pressure.
- Strategic Timing: Year-end equipment purchases can offset higher taxable income, reducing your liability.
Compliance and Regulatory Pressures
From HIPAA to Medicare and Medicaid reporting, compliance is a major responsibility. Mistakes can lead to financial penalties or jeopardize reimbursements.
Best practices:
- Maintain strict internal controls for patient data and financial records
- Stay updated on CMS and state-level reporting requirements
- Ensure proper segregation of duties within the accounting and administrative staff
- Document policies and train staff to reduce compliance risks
Cash Flow Forecasting and Tax Planning
Insurance reimbursement delays often leave Fresno practices with uneven cash flow. Forecasting is critical to staying solvent during lean periods.
Steps to take in the meantime include:
- Maintain a reserve safety fund equal to at least 2–3 months of expenses
- Use rolling 12-month cash flow projections
- Work with your CPA to spread out income and plan for estimated tax payments
- Take advantage of retirement plan contributions for both owners and employees
Common Mistakes in Medical Practice Accounting
Through years of experience working with Central Valley medical practices, we see the same pitfalls repeatedly: inadequate training on medical and accounting software, inaccurate billing and coding that reduces revenue, failure to log small expenses, and neglecting regular financial reviews until tax season.
Each of these mistakes may seem minor, but together they can cost practices thousands of dollars annually.
The Bottom Line
Medical practices face rising costs, stricter compliance, and constant reimbursement challenges. But with proactive accounting strategies and guidance from an experienced CPA firm, these challenges can become opportunities to save money, protect compliance, and strengthen financial health.
At DeMera DeMera Cameron, we help medical practices across the Central Valley streamline revenue cycle management, maximize equipment deductions, build compliance-ready systems, and forecast cash flow with confidence.
Your practice deserves financial stability as strong as your patient care. Connect with DDC today to safeguard your future.