The emotional toll of practice ownership: how to manage financial stress 

In our work developing practice management software and services, we meet lots of folks who are excellent at providing healthcare. Not only are they experts in their field, they’re also wonderful, compassionate humans who truly care about their patients and their work. Most therapists and medical professionals are dedicated to making people’s lives easier and brighter. Unfortunately, these noble intentions are often drowned in a sea of administrative burdens and financial complexities of running a practice.  

Imagine spending your day working to support patients as they struggle through hardship, pain, or recovery, feeling all the feels with them. Then—drained and exhausted—you switch modes to manage budgeting, deal with insurance, and address all the operational needs to keep your business afloat. It’s a lot. We get it. As overwhelming as this may feel, know that you are not alone—and there are solutions.  

Today, we’re sharing four simple, practical tips that can make a real difference for mental health professionals, therapists, and practice owners. These ideas are all about easing financial stress, boosting your income, and creating a strong, sustainable foundation for your practice. You’ve got this, and we’re here to support you every step of the way! 

4 Tips to reduce financial stress in your practice 

1. Optimize your EHR 

Your electronic health record (EHR) or practice management system is one of the most powerful tools in your financial toolkit—you just need to make sure you’re using it to its full potential. When work life gets hectic, it’s easy to forget about available resources and system features that could make things more efficient and less stressful. Here are some great ways to make your EHR work for you: 

• Insurance verification: Automate the process of verifying patient insurance coverage to reduce claim rejections and delays. This saves you time and prevents interruptions in cash flow. 

• Credit card payments: Make it easy for patients to pay their bills by letting them use their credit card right on your platform. People are much more likely to pay you on time if the process is quick and comfortable. 

• Batch billing: Speed up claims processing by managing multiple claims at once. Manually entering patient details one at a time should be a thing of the past. Submit all claims for the day with just a few clicks.  

• ERA posting: Handle payments more efficiently with electronic remittance advice (ERA). Think of it as getting a digital receipt from insurance companies that helps you reconcile payments faster. For example, the system can automatically match payments to the right claims, saving you the headache of manual tracking.   

Every feature you use is one less thing you have to handle yourself. It streamlines your workflow and helps you avoid cash flow issues or missed payments. Technology is there for a reason — use it to make your life easier! 

2. Monitor your cash flow consistently 

Keeping track of your cash flow is key to keeping your healthcare practice financially healthy. Strong cash flow management lets you cover expenses, invest in growth, and handle unexpected challenges. Here’s how to stay on top of it: 

• Know your timelines: When should you expect payments from patients, insurance companies, or partners? Being proactive with these timelines means you can plan around them and avoid surprises. Consider creating a calendar to track payment due dates and stay organized.  

• Reconcile payments regularly: Double-check that you’re actually receiving all the money owed to your practice. Payment discrepancies are not uncommon, especially with insurance carriers. The sooner you address missed payments, the easier it is to fix the oversight.  

Dealing with cash flow can be really overwhelming, and it’s something so many businesses struggle with. Remember—keeping a close eye on your accounts can make a big difference. It helps you spot potential problems early on, so you can tackle them before they become bigger issues.  

3. Watch out for warning signs of financial instability 

Nobody likes thinking about money problems, but catching issues early can save you a lot of headaches down the road. Keeping a business healthy is much like taking care of your physical body: you smartly watch out for worrying symptoms before they turn into a bigger illness. Likewise, it’s important to watch your practice for warning signs of financial instability, such as: 

• Difficulty making payroll  

• Struggling to pay rent or other recurring expenses  

• Mounting debt or overdue accounts payable  

If you see these warning signs, take action now. Waiting will only make things worse. 

4. Know when and how to seek professional help 

If you are driven and passionate about your work, you may find it hard to step back and let someone help carry the burdens of running a business. However, remember that it’s okay to rely on outside support. In fact, seeking out external expertise can save you time and money in the long run. Here are two common situations when hiring help is a great way to manage financial tasks in your practice: 

• Outsourcing billing  

If billing feels like a never-ending headache, outsourcing to a professional medical billing service can help ensure you don’t leave money on the table. Let financial experts handle claim submissions, denials, and follow-ups while you focus on patient care.  

• Hiring in-house billing professionals  

Hiring a billing specialist can help growing practices manage their finances better. They take care of tasks like processing claims, following up on payments, reducing errors, and staying compliant with insurance rules. This makes billing smoother, improves cash flow, and reduces admin work.  

Not sure whether to outsource or hire in-house? In-house billing can feel reassuring since you’re in direct control, sensitive patient information stays within your practice, and you have full transparency of your financial situation. But on the flip side, taking off your billing hat and replacing it with a people management hat can still leave you drained at the end of the day. Between hiring and training staff, it’s easy to feel stretched too thin. And if your practice grows or shifts, scaling up (or down) your team can be a whole new challenge.  

Outsourcingcan be just the solution you seek. You get to hand over all that stress and complexity to experts while saving yourself time and often money. For a lot of practice owners, it’s a decision that feels like a no-brainer once you weigh it all out. 

Final thoughts 

Money worries can really suck the joy out of running your healthcare practice, but it doesn’t have to be that way. By making the most of your practice management software, keeping a close eye on your cash flow, spotting red flags early, and reaching out for help when you need it, you can take control of your finances and feel more confident about your practice. You’ve got this!