How to Control Overtime Expenses - Health Care Commentaries - Somerset CPAs, Indianapolis, Indiana Spring 2005

How To Control Overtime Expenses

For a busy medical practice, some time-and-a-half work is generally unavoidable. But minimizing the need for staff overtime is an achievable goal if you focus on it.

Understanding the reasons for your overtime expense can often lead to better control. For example, physicians may be extending their workdays to accommodate growing patient volume. The result may be overtime for medical assistants and staff who must also stay late. To avoid this expense, you might stagger work schedules so that some employees start their days later and, therefore, stay without overtime until office hours end.

Practical Strategies
Among the many possible strategies for controlling overtime are the following:

Stay with the Schedule. Create a 40-hour work week and follow the schedule by starting and ending each day on time. To facilitate this, require that only today’s work be done today. Unless extraordinary circumstances occur, no one should stay late to finish up work that can be put off.

Use Job Sharing. When a position, such as receptionist, must be staffed during an office schedule that exceeds 40 hours, you might split the job between two part-time employees who will cover the required hours without the need for overtime.

Don’t Let Overtime Be Automatic. Never allow overtime without your or your practice manager’s express approval.

Don’t Allow Mixing Business with Lunch. Instead, require all lunch time to be taken away from desks and phones, because doing any work during a lunch break can recategorize the break as paid time.

Reexamine Workloads and Tools. Making adjustments or reassignments might increase efficiency and save time. If scheduling and recordkeeping tools are not well-suited to your practice’s current volume, upgrading your office technology could free up staff time and reduce the need to stay late.

Please contact a member of our Health Care Team if you would like to discuss this topic further.


Health Care Commentaries is provided by Somerset’s Health Care Team for our clients and other interested persons upon request. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. For additional information on the issues discussed, please contact a member of our Health Care Team. This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.

Somerset CPAs, P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
http://healthcare.somersetcpas.com

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