You didn’t go to medical school to spend your days worrying about rent, payroll, or rising supply costs — but here we are. Overhead has a way of sneaking up on even the most well-managed practices.
The good news? You can keep your finances healthy and maintain exceptional patient care. Here’s how to get your overhead under control in 2026 without compromising what matters most.
1. Know Your True Overhead Rate
Start by calculating your overhead percentage — total operating expenses divided by total revenue. For most medical practices, that number hovers between 60–70%.
If you don’t know your exact rate, you’re flying blind. Knowing your baseline helps you identify where to trim (and where not to).
2. Audit Recurring Expenses
Subscription creep is real. Review all recurring payments — software, vendor services, and memberships — and ask:
- Do we still use this?
- Is there a better rate or alternative?
- Does it directly support patient care or revenue?
Small savings across multiple categories can have a big impact on your bottom line.
3. Manage Staffing Strategically
Payroll is usually the largest expense in a medical practice.
- Use data to align staffing levels with patient volume.
- Cross-train employees for multiple functions.
- Consider outsourcing non-core tasks like bookkeeping or billing.
It’s about efficiency, not cutting corners.
4. Revisit Vendor Contracts & Lease Terms 📄
Don’t assume your vendors are giving you the best rates. Periodically review contracts with labs, suppliers, and landlords. Negotiating better terms or switching vendors could free up thousands each year.
5. Leverage Technology Wisely
Automation and integrated systems reduce manual work and improve accuracy. Cloud-based accounting, payroll tools, and practice dashboards can help you track performance in real time — and identify waste before it grows.
Final Thought: Efficiency Without Sacrifice
Your practice can thrive financially and deliver high-quality care — the two aren’t mutually exclusive. It starts with awareness, smart systems, and proactive financial management.
Next Step: Download Ledger Right’s Overhead Optimization Checklist to uncover where your practice can save — and where it should invest for long-term growth. Contact Us
