Medical Billing Forum

Starting a Medical Billing Business => Starting Your Own Medical Billing Business => : joanna62 February 18, 2018, 04:05:02 PM

: Tips for transitioning from no contract to requiring one plus a rate hike - GULP
: joanna62 February 18, 2018, 04:05:02 PM
I have a very small billing company specializing in PT. I have local solo PT's and I like it this way for now. We have been working without a contract for 4 years and I am learning that my rate is too low. I realize that I risk losing these clients, but looking for a tip or two as to how to broach this topic with my clients. Thanks!
: Re: Tips for transitioning from no contract to requiring one plus a rate hike - GULP
: Michele February 19, 2018, 01:17:38 PM
Well if you are working without a contract then you would just have to notify them that you will be raising your rates.  I would ask them for a meeting.  Face to face is better.  Then just explain that in order to continue to provide the quality service you have been providing you will be raising your rates effective "_______".  Give them plenty of notice (at least 30 days).  Hopefully they are happy with you and will be ok with the raise.
: Re: Tips for transitioning from no contract to requiring one plus a rate hike - GULP
: PMRNC February 19, 2018, 05:30:57 PM
Working without a contract really is not a good idea, so many things could go wrong, 4 years or 1 month, makes no difference. I would definetely get a contract in place for all of your clients and include a cover letter that you will be requiring clients to sign the contract. You could word the letter in such a way that would outline your charges and how they have stayed the same and maybe research the going rates in your area to explain the increase. Having a contract in place, and one that allows you to review after a year or two (whatever terms) allows you to do this later with no explanation later. So you won't have to go through this again.