Welcome to Cornerstone Healthcare Consulting & Management

#healthinsurance

Reduce Medical Practice Expenses

by

Reduce Medical Practice Expenses

Are you struggling to keep your medical practice financially stable? Searching for effective ways to cut costs and boost your bottom line? You’re not alone. In this post, we’ll share our proven strategies to reduce medical practice expenses—including how we helped one practice save an impressive $260,000!

A frequent concern among physicians is the frustrating reality of working harder while earning less. On one hand, declining reimbursements and relentless claim denials from insurance companies are well-known challenges. But what about the other side of the equation? Have you taken a closer look at your practice’s spending—where the money is going and how it’s being used?

When Cornerstone Healthcare Consulting and Management evaluates your practice, one of the first items we request is a detailed expense report from the past 12 months. This report provides valuable insights into areas where you may be overspending, allowing us to identify quick wins for cost savings.

For instance, we prioritize analyzing your medical supply and medical waste expenses. In the case of medical waste, one vendor in particular has a reputation for overcharging medical practices. By addressing this issue, we have helped clients save thousands of dollars on waste management alone.

To illustrate, here’s an example from a former client with two locations. Their original vendor was significantly overcharging for waste services, but after switching to a new vendor, they achieved substantial savings. The comparison below highlights the costs under the previous vendor versus the current one, along with the total savings realized.

This case represented significant cost savings for the client, and while it might seem like an isolated incident, it was far from unique. Time and again, when we encounter this particular vendor, it’s clear the client is overpaying. Many medical practices are simply unaware that alternatives exist. Even when they suspect other vendors might be available, they often have no idea where to begin their search.

Compounding the issue, clients frequently find themselves locked into restrictive contracts, believing there’s no way out. This vendor has even faced a lawsuit in New York for breaching contractual law by failing to notify clients within the required 60 days that their contracts were set to renew. As a result, many practices were unknowingly locked into extended agreements at inflated rates. Thankfully, the lawsuit was resolved in favor of the clients, setting a precedent we’ve successfully used to help other clients break free from these contracts.

We always take a close look at the vendors practices use for their medical supplies, as some are notorious for overcharging. We recommend a preferred medical supply vendor that many physicians aren’t even aware of. In every instance we’ve worked with them, they’ve saved our clients over 20% on supply costs. In some cases, simply switching to this vendor has prompted the previous supplier to suddenly match those lower prices—proof that they were charging more than necessary all along. The problem is, if no one is monitoring year-over-year price increases or exploring alternative vendors, these overcharges go unnoticed, allowing suppliers to continue inflating costs.

Employee benefits present another significant opportunity for cost savings. As highlighted in our previous blog, The One-Stop Shop for Doctors, both retirement and health plans often require careful review and updates. Within the Cornerstone Network, we collaborate with trusted professionals who consistently deliver exceptional results for our clients.

For retirement planning, as well as life and disability insurance, we rely on Planned Futures Financial. Specializing in the medical industry, they’ve proven to be a valuable partner. In one notable case, they saved a client over $40,000 by reducing retirement plan expenses, lowering group disability insurance costs, and eliminating TPA fees.

For health insurance, Azeros Health Plans is our go-to solution. Co-owners Ron Zoeller and Kevin Gannon bring years of experience from running their own companies before founding Azeros together. Beyond optimizing health plans, we also work closely with Azeros on Direct Primary Care initiatives, further streamlining healthcare costs for our clients.

By leveraging these strategic partnerships, we help ensure our clients maximize savings while maintaining top-tier benefits for their teams.

Our primary goal is to help you save money, but we also believe in ensuring you have the right resources to run your practice effectively. If that means recommending a new vendor that might cost a bit more but provides the coverage you truly need, we won’t hesitate to do so. One example of this is your business insurance.

We work closely with Steinmiller Insurance, specialists in medical practice coverage. They have a deep understanding of HIPAA regulations and the critical importance of data protection. When reviewing your current insurance, they may be able to match your coverage and save you money. However, they might also identify gaps in your coverage and recommend adding essential protections. While this could increase costs slightly, it could save you from much larger risks down the road.

When analyzing your expenses, we go beyond just targeting the obvious or the biggest costs. Our approach is comprehensive—we meticulously review every detail, big or small. Beyond providing recommendations, we actively assist in implementing them. From expense analysis and vendor negotiations to executing changes, we’re with you every step of the way. Our experience spans everything from inventory audits and installing new phone systems to transitioning from server-based EMR to cloud-based solutions.

As insurance reimbursements continue to decline, reducing expenses has become a top priority for medical practices. Let us help you streamline your operations and cut costs. Schedule a consultation today, and let’s get started!

The One-Stop Shop for Doctors!

by

The One-Stop Shop for Doctors

With extensive experience consulting for doctors and medical practices, Cornerstone Healthcare Consulting and Management has built a trusted network of esteemed business professionals. Through our work, we’ve identified recurring challenges that many practices encounter, particularly in the areas of employee benefits and human resources. Beyond practice-level concerns, we often discover individual challenges faced by physicians, such as insufficient retirement planning or a complete lack of strategy. By partnering with exceptional experts, we deliver customized solutions designed to support both the operational needs of practices and the personal goals of physicians.

We proudly call ourselves the “One-Stop Shop for Doctors.” As a physician-focused healthcare consulting company, our mission is to provide tailored solutions for doctors, whether they are solo practitioners, part of a group, or practice owners. We specialize in addressing their unique needs, from managing social media and building a strong personal brand as a hospital employee to launching a new practice or revitalizing an existing one.

For every challenge, we bring expertise and dedication. And in areas where additional specialized skills are needed, we collaborate with top professionals within our trusted Cornerstone Network to ensure comprehensive, high-quality solutions. Whatever the scenario, we’re here to support physicians every step of the way.

When consulting for medical practices, we often find that employee benefits are an area in dire need of improvement. Two major categories where significant savings can be achieved are retirement plans and health plans.

In many cases, practices establish broker relationships for these benefits years earlier and then leave them unchecked. Over time, these brokers continue to earn commissions while offering little to no added value. Health plan premiums steadily increase each year, and many practices simply accept these hikes as inevitable. Meanwhile, retirement plans often go unnoticed, with practices unaware of the high percentage rates they’re paying, the performance of their investments, or the hidden fees involved.

At Cornerstone, our healthcare consulting services include a thorough review of employee benefits, and the results often leave practice owners stunned. We’ve uncovered retirement plans with fees exceeding 2%, excessive TPA costs, and inappropriate employee charges. For example, we recently helped one private practice save nearly $40,000 on their retirement plan alone.

By taking a closer look at these critical areas, practices can unlock substantial savings while providing better benefits for their employees.

When evaluating practice health plans, simply opting for the cheapest option might seem convenient, but it doesn’t truly address the needs of the practice. Instead, we take a comprehensive approach, analyzing the practice’s size and exploring opportunities that align with its unique circumstances. For instance, we worked with a practice in New York that was large enough to transition to a partially self-funded model. This strategic shift was projected to save them up to $30,000 in just the first year. Over time, as they gained a clearer understanding of their annual expenditures, they were able to take on more calculated risks, unlocking even greater savings.

At Cornerstone, we partner with Planned Futures Financial to address retirement plans for medical practices. Beyond retirement planning, we also evaluate a practice’s Group Life and Disability Insurance and assess whether a buy-sell insurance policy is in place. Surprisingly, many practice owners are unfamiliar with buy-sell insurance and, upon learning its purpose, often regret not initiating a policy sooner. While buy-sell insurance is crucial, it’s important to establish a clear succession plan before purchasing a policy.

Unfortunately, succession planning is a topic many practices avoid, often leading to contentious discussions down the line. For physicians considering partnership in a medical practice, one of the most valuable pieces of advice we can offer is to ensure that a robust succession plan is in place from the outset.

Each medical specialty brings its own considerations. For instance, in OBGYN practices, it’s essential to determine how partners are financially handled once they stop performing obstetrics. These important conversations, if delayed, often lead to conflict, so addressing them early is key.

Need support navigating these critical discussions? We can connect you with experienced healthcare attorneys to guide the process and ensure your practice’s long-term success.

When reviewing employee benefits, it’s crucial to take a comprehensive look at your human resources department as a whole. Far too often, we encounter practices operating without proper job descriptions for staff, or relying on outdated, paper-based descriptions that haven’t been revised in over a decade. If job descriptions are missing or obsolete, it’s likely that the employee benefits manual is also outdated—or doesn’t exist at all.

It’s surprising how frequently we see practices hiring staff without a clear job description or an employee manual. This lack of structure not only creates accountability issues but also leaves the organization vulnerable. Unsurprisingly, these situations often lead to workplaces plagued by toxic employees, who contribute significantly to operational challenges. Without established processes for addressing misconduct or managing termination, these problems escalate unchecked.

When was the last time your medical practice got a check-up? A simple review of your expense report could save you thousands of dollars. Perhaps your practice is thriving, but you’re unsure if your personal retirement plan is optimized or if you have adequate disability insurance. Maybe your operations are running smoothly, but you’re struggling to navigate social media marketing. Or you could be a hospital-employed physician looking to maintain your personal brand and improve how you market yourself. Whatever your needs, we’re here to help! Visit our website to explore our healthcare consulting services and schedule a consultation today.

Cornerstone and Azeros Introduce Health Plan Innovation

by

BUFFALO, NY, November 18, 2021- Cornerstone Healthcare Consulting and Azeros Health Plans intend to bring change to Western New York healthcare delivery and funding. “Our goal is not to do what is easy,” says Melissa (Missy) Starowitz, Owner of Cornerstone. “We will do what is necessary for the employer community that to date has been ill-served by the healthcare infrastructure.” 

Azeros designs health plans that provide quality care and lower costs to employers. Cornerstone provides consulting and marketing services to medical professionals and practices. Combining their collective backgrounds, the companies have teamed up to introduce the region to Direct Primary Care (DPC) supported by an Exclusive Provider Organization (EPO).

The EPO model provides physicians an independence from the “Mother – May I?” oversight of health insurers and the outdated fee-for-service medicine that complicates billing and payment.  Under the DPC model, new clinics offer employees experience greater access to primary care at a fixed monthly payment and zero co-pays for the care. When combined with an international specialty pharmacy program, employers save 20% off current costs.

Mrs. Starowitz formerly owned urgent care centers and developed tailored programs such as college student telemedicine and occupational health combined with on-site health centers.    

Azeros CEO Ron Zoeller was the founder and CEO of North American Health Plans in 1983, which administered self-funded plans for over 400 groups and 400,000 members, paying $2 billion in annual claims. Azeros partner Kevin Gannon, an employee benefits broker over 35 years, was the founder/President of Niagara Benefits Group and later led the growth of M & T Benefits Agency.

While building the Western New York EPO, the companies will introduce employers to Direct Primary Care vendors PeopleOne Health and Everside Health. The DPC converts an existing medical facility or builds a new clinic at their expense.

The EPO is not exclusive to primary care providers or those operating with a DPC model. The EPO network extends a much-needed opportunity to all physician specialty types by offering them independence, visit capacity and cost control. Cornerstone and Azeros are excited to share this model with the physicians and employers of Western New York.

About Cornerstone Healthcare Consulting and Management

Cornerstone Healthcare Consulting is a physician-centric company with the experience, expertise, and resources to assist physicians in many aspects of their professional lives. They offer an array of services for individual physicians or entire practices including marketing and branding needs, sustainable organizational change, and opening new practices. For more information visit their website at cornerstonehealthcareconsulting.com

About Azeros Health Plans, LLC

Azeros Health Plans is the only Managing General Administrator in the self-funded insured health plan industry. They provide employers with transparency and plans that significantly reduce their costs, as well as offer an international pharmacy benefits program to help employers save on prescription drug costs. For more information visit their website at azeros1.com

Contact

Cornerstone: Melissa (Missy) Starowitz, mstarowitz@cm-hi.com, 585.409.7624

Azeros: Kevin Gannon, k.gannon@azeros1.com, 716.913.4789

Cornerstone and Azeros Introduce Health Plan Innovation

Fighting to Lower Health Plan Costs!

by

From the humble Buffalo suburb of Cheektowaga to the owner of a large health plan, consisting of 400,000 members and clients such as the University of Notre Dame, Dunkin Donuts and Fisher-Price Toys, Ron Zoeller knows all there is to know about health insurance.

Similarly, his business partner, Kevin Gannon, one of eight children raised in Lackawanna, New York, rose from his beginnings as a broker of life insurance, to owning and selling his own brokerage, to joining Ron in the development of Azeros Health Plans in 2019.

As the only Managing General Administrator in the Self-Funded health insurance industry, Azeros is about more than selling employer health plans. Using their combined years’ worth of experience, they are seeking to partner with employers to seek solutions that improve their bottom line and positively benefit their employees. Companies possessing 100+ employees will benefit in becoming self-funded by removing the “fat” that goes toward health insurance admin and brokerage fees. Instead, they will pay dollar-for-dollar toward their expenses, ultimately saving significantly on their health plan costs.

Transitioning companies to self-funded health insurance isn’t the only way Ron and Kevin are saving money for their clients. Additionally, they employ the practice of Reference Based Pricing (RBP), as well as a prescription benefits management program that is saving employers as much as 30% on prescription costs! Never heard of RBP? Don’t worry, you’re not alone. Typically, in-patient charges can result in charges that are 250-400% of Medicare. Through Reference Based Pricing, Azeros works to obtain charges that are 150-200% of Medicare, half of what they typically would be!

Interested to learn more about what Ron and Kevin and the Azeros team can do for your company? Listen to this video to learn more, as well as head to their website at www.azeros1.com There, you can use a tool they have named the “Under-Righter”, to see what savings you may be able to achieve. Under 100 employees? That’s okay, they can still assist your organization as a fully insured employer, including still being able to assist with the significant prescription medicine savings! And yes, even if your company has already renewed their annual plan, they can assist you at any time!

Listen in as Ron and Kevin discuss their backgrounds, what they’re working on now, and how Azeros and Cornerstone are collaborating to help both employers and physicians! Also, stick around for the end, when Ron tells us the story of when the Bills almost left Buffalo, and how he influenced them staying.