How Ontario Doctors Can Protect Their Buying Power from Inflation & Trump’s New U.S. Tariffs In A Challenging Economy
The Canadian healthcare landscape - and Ontario doctors - are facing unprecedented financial opportunities and challenges. With rising inflation, new U.S. tariffs increasing medical supply costs, and ongoing system funding pressures, medical practices must become more financially strategic and culturally conservative than they ever needed to before.
Here are three practical, immediately actionable steps to protect and potentially increase your clinic's financial stability.
1. Optimize OHIP Billing & Revenue Capture
The Hidden Revenue Leak
Most Ontario doctors unknowingly leave 20% - 40% of billable revenue unclaimed due to simple coding errors and missed claim opportunities. This isn't just lost money—it's a systematic drainage of your practice's financial health. It’s time for every physician to embrace the need to claim every possible dollar. The increase revenue now likely will help ensure you’re lifestyle and buying power remains in 2025 the way it was in 2024.
Tech and expert-based Billing Precision
Implement billing solutions that automatically:
Flag potential errors and correct them before claim submission
Perform automated reconciliation
Ensure maximum revenue capture by coaching the doctor and the team
Pro Tip: Our data shows that these things, when working together, can be a force-multiplier for the practice.
Strategic Billing Audits
Conduct quarterly comprehensive billing reviews
Consider engaging an OHIP billing expert to:
Recover missed claims
Identify systemic billing inefficiencies
Develop robust claiming strategies
Industry Insight: Clinics implementing regular audits recover an average of 20%+ in previously lost revenue.
2. Strategic Cost Management & Purchasing
Countering Inflationary Pressures
New international tariffs are driving up costs for teams, medical supplies and technology. Proactive clinics can mitigate these challenges through smart purchasing strategies.
Group Purchasing Power
Join Group Purchasing Organizations (GPOs)
Form collaborative buying networks with other clinics or connect with us if you’d like to consider collective purchasing
Negotiate volume-based contracts for yourself, looking at your own volumes and timelines and by setting up requests for proposals from vendors for your supply purchase.
Market Data: GPOs help Canadian clinics save on supply costs, and smart planning helps every clinic plan and purchase in advance for what they know they will use.
Operational Efficiency
Implement dynamic booking solutions that ensure efficiency in practice flow
Adopt digital documentation systems
Optimize appointment scheduling to reduce no-shows and version code errors (among other errors that happen at initial reception)
Research Finding: Telehealth can reduce operational overhead substantially and is worth doing when the patient doesn’t need to present in person.
3. Revenue Stream Diversification
Beyond Traditional OHIP Models
Relying solely on OHIP leaves your practice vulnerable to policy shifts and funding uncertainties.
Introducing Complementary Services
Executive health screenings and initial reports
Specialized wellness programs
Premium virtual consultation packages that combine with allied health or other services
Growth Trend: Private medical services revenue in Canada is expanding rapidly.
Key Takeaways
Ontario doctors who strategically:
Maximize OHIP revenue capture
Implement cost-cutting strategies
Diversify income streams
Will be best positioned to thrive in today's challenging healthcare economy.
About Physicians First
Physicians First is dedicated to empowering Ontario medical practices with data-driven strategies, cutting-edge insights, and practical tools for sustainable growth.
Ready to transform your practice's financial strategy? Book a Free Consultation
Disclaimer
All statistics and findings are based on aggregated industry research and Physicians First internal data as of January 2025.
How will Trump’s tariffs impact Ontario doctors? – Tariffs will raise costs on U.S. medical supplies, making operations more expensive.
What percentage of OHIP revenue is typically lost due to billing errors? – Studies estimate 10-20% of revenue is lost due to coding mistakes.
How can AI help with OHIP billing? – AI tools detect claim errors and optimize submissions for higher reimbursement.
What is the average revenue increase from a billing audit? – Clinics recover an average of 12% in lost revenue from audits.
How can Ontario doctors lower their medical supply costs? – Joining a GPO or bulk purchasing can reduce costs by 10-30%.
What are the benefits of a Group Purchasing Organization (GPO)? – GPOs negotiate bulk discounts, lowering supply costs for clinics.
How much do telehealth services save in overhead? – Telehealth reduces clinic expenses by up to 25%.
Are private medical services legal in Ontario? – Yes, as long as they do not duplicate OHIP-covered services.
What are examples of private-pay medical services? – Executive health, wellness programs, and specialty consultations.
How do clinics implement membership-based healthcare? – By offering exclusive services through monthly or annual fees.
Can clinics still focus on OHIP while offering private services? – Yes, they can maintain OHIP while adding non-OHIP services.
What impact does inflation have on clinic operations? – Higher costs for staff, rent, and supplies reduce clinic profitability.
What is the best way to combat rising inflation for doctors? – Maximizing revenue, cutting costs, and diversifying income streams.
Do all doctors qualify for OHIP audits? – Yes, any OHIP-billing physician can conduct an audit to find missed revenue.
How can clinics prevent revenue loss? – Automating billing and performing regular audits are key strategies.
Is AI billing expensive to implement? – Many AI billing solutions offer performance-based pricing.
What are the risks of relying solely on OHIP revenue? – Policy changes and inflation reduce profitability over time.
How do doctors prepare for economic downturns? – By diversifying income and improving operational efficiency.
What are the benefits of telehealth for clinic revenue? – It lowers overhead and creates new revenue opportunities.
Where can Ontario doctors find financial resources? – Organizations like OMA and Physicians First offer guidance.
