COVID-19 emergency preparedness plan, page 7
12. Conserve cash
Companies that survive crises are often the ones that have an available cash reserve. Even though we are predicting a decline in production this year, we also are strongly encouraging practices to conserve cash. For example, if the practice is shut down for 14 days with no production but team members are still paid sick leave and/or vacation time, there will be a need to cover those costs.
One approach to consider is for doctors to temporarily lower their take-home income and place that difference into a practice cash account. The tax aspects can be worked out later in the year to avoid any tax consequences. However, for the short term, having more cash on hand is beneficial to the practice.
Our strongest advice is don't panic. This is a challenging time. Make logical and calm decisions. Use of experts and advisers as necessary to prevent your practice from either ignoring the current situation and getting caught off guard or making illogical decisions to create long-term damage to the practice. In a time of crisis, it is important to implement or prepare the best strategic scenarios without overreacting.
We wish you health and safety. We will get through this, hopefully sooner rather than later. Dentistry, as has happened before, will bounce back to a vibrant level and continue to make a difference in the lives of your patients.
P.S. Feel free to forward this to friends or colleagues so that everyone in our profession might be best prepared in the face of an unprecedented situation.
Note: Local laws may vary. Government guidelines and regulations are rapidly changing. When implementing human resources policies, it is advisable to check with your attorney.
Roger P. Levin, DDS, is the CEO of Levin Group and the executive founder of the Dental Business Study Clubs. To contact Dr. Levin or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit www.levingroup.com or email email@example.com.
The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.