The Money Came In. How Much Can the Practice Use?

A strong collection month can make a retina practice’s bank balance look reassuring. But how much of that money is needed to pay outstanding drug invoices? In this video, I explain the two revenue buckets: service fee collections for visits, testing, injections, and similar services, and drug collections tied to the drugs the practice purchased. I walk through a hypothetical $1 million collection month, explain why extended credit terms can create a false sense of available cash, and discuss what to separate before making spending decisions. Read the companion blog: https://www.elizabethcconsulting.com/... Subscribe for practical conversations about running a retina practice. Elizabeth Cifers, MBA, MSW, CHC, CPC Elizabeth Cifers Consulting, LLC #RetinaPractice #RevenueCycle #PracticeManagement Chapters 0:00 The money came in—how much can you use? 0:32 Two buckets of revenue 1:29 One injection, two different payments 2:11 What a $1 million collection month can hide 3:07 Credit terms and the bank balance 3:48 More drug volume, more purchasing obligations 4:28 Separate the buckets before spending 5:23 How much needs to pay the drug invoices?