People often think of healthcare as large enterprises and hospital systems, when in reality, medical practices usually are self-managed businesses run by medical professionals. These small practices must compete with these larger healthcare corporations while balancing the necessary components of running a business. Small- to mid-size companies must handle the overhead of their building and expensive medical equipment, as well as the high annual cost of employee health insurance, salary, and increased drug costs by pharmaceutical organizations. While all these barriers pose business challenges, partnering with a PEO can help lower employee-related costs and administrative burdens, allowing your practice to flow smoothly.
Here we'll discuss how partnering with a PEO can provide your medical practice with additional HR support.
Saves You Time and Money
A PEO will lower your medical practice's administrative costs, helping you provide better benefits without exorbitant prices. They achieve this by using their economies of scale to secure better rates for their clients. However, while PEOs will assist you with your benefits, you still manage your practice and employees daily. The PEO handles many human resources duties, such as processing payroll and administering employee benefits.
Because of the vast number of workers PEOs serve, your practice can take advantage of better-quality, reduced packages. Other benefits include cheaper worker compensation rates, lower unemployment, and reduced healthcare costs with better quality coverage. Working with a PEO saves you time and money, which you can redirect towards other aspects of your medical practice like finances, clinical areas, and billing. It will also facilitate saving 35% of HR administrative overheads.
Helps You Focus on Patients and Staff
How much time during each pay cycle does your practice spend conducting payroll or counting days employees take off? PEOs save you time each week by handling those tasks for you, giving your staff time to focus on what matters most to your practice: your patients and employees. The added ability to focus on the people connected to your practices enables you to create a workplace culture promoting meaningful work and supportive relationships with your employees. PEOs primarily assist in the promotion of employee engagement. According to a survey by NAPEO, PEO clients regularly report stronger revenue and profitability growth.
PEOs lower your staff-side tasks, giving them more ability to focus on patients. The added time for reviewing patient files allows for more confident and comprehensive care. It also allows for better engagement with staff to learn about their concerns regarding management and equipment, which can help you grow your company by offering better services. You will have ample opportunity to address any issues employees may experience, which ultimately translates to better care for your patients.
Provide Healthcare Benefits Deserving of Healthcare Professionals
Providing competitive healthcare coverage helps you attract and retain top talent. Large corporations have more built-in capability to access high-quality benefits, which aren't available to smaller companies. However, PEOs group employees together to provide these improved benefits, allowing you to provide your medical staff with quality coverage.
Healthcare workers understand medical care because their jobs give them a glimpse into the industry's functions. That gives them a better sense of good coverage, and they expect quality benefits as a result. Partnering with a PEO helps you offer good benefits. Furthermore, it demonstrates how well your practice does as a business, giving your staff confidence in their employer. Employees will feel valued, increasing their workplace devotion and providing higher productivity. Workers will also be more inclined to stay, helping you improve employee retention and keep knowledge within your practice.
Maintains Compliance Without You Needing to Worry About It
Federal and local laws evolve, and businesses must stay vigilant to maintain compliance in their operations. These regulations could cut across tax reporting requirements, employees' compensation insurance, employment laws, and the Affordable Care Act. Complying with such regulations can be difficult for any business, let alone medical practices that must stay on top of other changes and regulations as the general understanding of healthcare improves. PEOs simplify this by handling your administrative tasks and ensuring you're up-to-date with changing regulations. That frees up your focus to keep up with changing medical trends.
Non-compliance costs your practice a lot in fees, which you should obviously avoid, as that money can go towards new equipment for better staff and patient care. Your PEO can offer essential advice and guidance to assist your practice in adapting to recent trends, making it easier for your medical practice to navigate any changes, thereby avoiding lawsuits and costly payroll errors.
Keeps Your Staff Happier
An unmotivated workforce causes many issues for your company, such as lower productivity and higher staff costs due to absenteeism. Using a PEO can help you boost morale by allowing you to spend more time with your employees, addressing their concerns, and supporting them. Furthermore, providing better benefits and more extensive HR support helps employees maintain a better work/life balance. Better healthcare assures them that they and their families are cared for, while other benefits (such as PTO or flexible hours) allow them to have a life outside work.
Well-valued employees tend to be happier and highly motivated to do their best work for their company while also improving employee retention. It will also make hiring and retaining talented workers less strenuous and provide a better patient experience. Patients can tell when staff is happy, and happier staff will provide better care. Retaining staff further allows patients to form relationships with the people in your organization as they attend their regular visits, helping them feel more comfortable and build a lasting customer base.
Helps Your Practice Grow More Quickly
PEOs provide businesses with other HR services, like counseling on handling staffing decisions. They can help you learn more about your practice's business and management side, which is beneficial if your background is primarily in medicine. Your ideal scenario makes your PEO a partner you can turn to when you need help or advice on how to grow your practice. Their guidance can help you achieve excellent employee engagement, leading to lower turnover and improved growth.
You want your practice to grow and expand. Having a strong talent pool and cost-effective HR solutions is one of the best ways to do so and grow sustainably. Partnering with a PEO will help you take your business to the next level.
A PEO Can Take Your Business to The Next Level
PEOs have a lot to offer both large and small companies. Small business owners, for example, can leverage HR technology to streamline administrative tasks while increasing staff productivity. Large firms, on the other hand, can use PEO services to perfectly implement retirement plans such as 401(k) plans. Outsourcing with a PEO helps you focus your efforts on aspects of the firm that can support growth without worrying about your necessary HR tasks.
