5 Tips to Help Find Hidden Savings and Offset Rising Practice Costs

TLDR

• Opportunities to cut down on practice costs are abundant. Look closely at your fixed and variable expenses to find ways to save
• Making strategic use of your credit card and banking accounts can help you save considerably on fees and interest
• Digital tools can help automate tasks, boosting the efficiency of your practice
• Physician-specific tax deductions, grants and other incentives can provide valuable savings and funding to optimize your practice

1. Reevaluate your practice expenses

When medical supplies, staffing and utilities become more expensive, it’s time to take another look at where your practice dollars are going and determine where you may be able to cut back. Look at both your fixed and variable costs as you search for areas to trim.

Your fixed costs:

• Clinic space: If you’re not using all your exam rooms or have reduced in-person hours, consider subleasing space to another practitioner (i.e., a physiotherapist or dietitian) or renegotiating your lease. In many regions, it’s a renters’ market for medical office space.
• Equipment: Consider sourcing gently used medical devices, diagnostic equipment or refurbished computers to save on capital costs.

Your variable costs:

• Medical supplies and inventory. Review ordering patterns to avoid overstocking and ensure you’re benefiting from group purchasing organizations (GPOs) or medical associations that offer volume discounts.
• Lab and diagnostic service fees. If applicable, revisit agreements with third-party providers or explore switching to alternative providers who are offering better rates.
• Operating expenses. Energy-efficient lighting and thermostats can reduce utility expenses. Review your internet and mobile plans, too – many providers offer professional discounts for healthcare practitioners.

  It’s also worth taking a look at your bank statements. Consider an annual review with your financial partner, as you may qualify for savings you’re not aware of. For example, RBC offers savings on personal and business banking for practice owners.

• Subscriptions and software licences. Run through all the medical publications, tools and EMR platforms you’re subscribed to. Cancel unused licenses or switch to bundled pricing where available.
• Staffing and payroll. Automated payroll solutions can cut down on your paperwork and help you keep up with changing regulations, boosting your practice productivity. At the same time, cross-training administrative staff or using part-time / contract personnel can help control payroll costs.
• Billing. Outsourcing billing through a medical billing service can also reduce costs if done efficiently. For instance, Dr.Bill saves time and simplifies the medical billing process for individuals, clinics and hospitals in Ontario, British Columbia and Alberta.
• Patient outreach and marketing. The best advertising is often word-of-mouth. Consider organic, low-cost and community-based communication strategies that may boost referrals.

2. Assess your business credit cards and loans

Business credit cards can be very useful payment vehicles when used strategically:

• Pay balances on time: Avoid interest costs by paying your credit card in full each month.
• Maximize rewards: Use your business credit card for recurring practice expenses (medical supplies, utilities, insurance) and redeem points for equipment, travel to medical conferences or staff incentives
• Refinance debt: If you have outstanding loans or lines of credit, speak with your financial advisor about restructuring to lower your monthly payments or even pay them off sooner to be rid of the monthly expense.

3. Go digital

Digital tools can significantly reduce administrative burdens, staffing costs and billing delays.

• Upgrade EMR or billing software: Ensure your tools automate appointment reminders, insurance submissions and billing reconciliation.
• Use virtual care strategically: Offering virtual visits where appropriate can lower room turnover costs and increase efficiency.
• Automate inventory management and ordering: Cloud-based tools can help you track and reorder supplies only when needed, reducing waste.

Tip: Ask your front-line staff where they see bottlenecks — they often have firsthand insights that can save both time and money.

4. Utilize physician-specific tax deductions and credits

As a practice owner, you have access to deductions and credits that can significantly reduce your tax burden.

• Capital Cost Allowance (CCA): Claim depreciation on equipment, technology and leasehold improvements.
• Scientific Research and Experimental Development (SR&ED) Tax Credit: Eligible for physicians conducting clinical trials or research.
• Apprenticeship Job Creation Tax Credit: If your practice trains medical residents or apprentices in administrative roles.
• Incorporated Physicians: Can benefit from the small business tax rate and income splitting strategies (where applicable under current rules).

Consider working with a financial advisor or tax professional who understands medical practice finances to ensure you’re maximizing all available deductions.

5. Access grants, incentives and value-added services

There are government and industry programs designed to help medical professionals reduce costs and invest in their practices.

• Healthcare-specific grants: Available for digital health modernization, mental health delivery, Indigenous health initiatives and rural practice support.
• Energy efficiency incentives: Rebates for upgrading HVAC systems, lighting or other clinic infrastructure.
• Banking partnerships: Financial institutions such as RBC offer physicians value-added services — including discounts on medical billing services, payroll software, cybersecurity tools and practice management solutions.

You can also access free or low-cost digital tools for branding, scheduling, patient communications and accounting.

If you find that running your practice has become more expensive than ever, you’re not alone. Many clinic owners are feeling the crunch of the economic and global factors that are affecting everything from supply chain to staffing to regulatory requirements. The good news is, by proactively managing overhead, adopting digital efficiencies and taking advantage of tax strategies and incentives, you can uncover meaningful savings while continuing to deliver the high level of patient care your community relies on.