Medical Billing Forum

Starting a Medical Billing Business => Starting Your Own Medical Billing Business => : MBP November 04, 2009, 11:50:44 AM

: starting billing for a new provider
: MBP November 04, 2009, 11:50:44 AM
looking at billing as at a continuous cycle, how easy is it to start billing for a new provider and "catch up" with all outstanding balances and awaiting claims? do i just get an AR from the provider and start sending claims where they were left of?
: Re: starting billing for a new provider
: Pay_My_Claims November 04, 2009, 01:57:57 PM
Erika, it is not different than if you worked in their office. Yes, if you are doing AR (cash recovery as well) you would work the back log. I personally don't include cash recovery with a new client. It is TOTALLY separate as it includes much tedious work. If a client would like that also, it is a flat fee and payable up front, otherwise his office staff works on the back-log while i work future billings.
: Re: starting billing for a new provider
: melissa_2004 November 04, 2009, 02:07:10 PM
Great advice.  I have a provider with over a year of back log.  I am charging a separate fee but will definitely look at a flat rate going forward to keep it clean.

Melissa
: Re: starting billing for a new provider
: MBP November 04, 2009, 02:30:47 PM
thank you for the advice!
: Re: starting billing for a new provider
: Pay_My_Claims November 04, 2009, 03:46:36 PM
Great advice.  I have a provider with over a year of back log.  I am charging a separate fee but will definitely look at a flat rate going forward to keep it clean.

Melissa

Yes, that is called "cash recovery". It is something that is not included in my Full Practice Management package. It is a stand alone service. Now I do have a client that just started billing DME and they have low volume, so I took on those cases because I knew the denial was simple and easy to fix. I also don't do % billing. I charge according to specialty, volume and time to encompass my worth. It balances out very well from my point. Also one advantage is that I have a consistent monthly expected payment, and it alleviates me of dealing with claims that have not paid if I decided to terminate a provider or vice versa.
: Re: starting billing for a new provider
: PMRNC November 04, 2009, 05:46:10 PM
I agree with Charlene on this one. In addition I work the backlog but I am sure to keep current first. The backlog work goes secondary, keeping current keeps the cash-flow coming in. For example if you have backlog of lets say 6 months, you get current out first, then go back and bill the backlog. But A/R Recovery should be separate if you are taking on a new clients current billing as well. I take it one step further and provide a separate contract for the backlog.
: Re: starting billing for a new provider
: Pay_My_Claims November 04, 2009, 05:58:33 PM
I may have to do that as well Linda. Currently it is added as an addendum to my current contract. If they don't have that I just have them initial it and enter n/a
: Re: starting billing for a new provider
: melissa_2004 November 05, 2009, 07:11:32 PM
Great advice as usual!  I didn't think of a separate contract for backlog items (recovery).  I have it like Charlene referenced in my contract as well. 
: Re: starting billing for a new provider
: gderilus November 06, 2009, 08:48:14 PM
If you're doing a cash recovery and full practice management, can you just charge the provider a higher fee for everything or cash recovery should be completely separate.
: Re: starting billing for a new provider
: Pay_My_Claims November 07, 2009, 07:40:57 PM
If you're doing a cash recovery and full practice management, can you just charge the provider a higher fee for everything or cash recovery should be completely separate.

separate. what happens if they cancel your services??? You have incorporated the cost of cash recovery into % billing at instead of 8% you do 10%. What if you don't recover the old billings? you work and get no money. If you do a flat fee rate per month...how long do you charge that. I think giving them a flat fee for the back log, and a flat rate or % charge for your new billings is the BEST way to go.
: Re: starting billing for a new provider
: gderilus November 08, 2009, 10:37:29 PM
That sounds good, I  really think charging a flat rate is best for all your hard work.
: Re: starting billing for a new provider
: PMRNC November 09, 2009, 10:03:33 AM
Another thing to consider when working A/R Recovery is that you check your state laws. You need to watch for verbiage in your state law that would require you to be bonded to "ACT" as a collection agency. This means that even if you do NOT collect the funds, there are states that require a surety bond in order to provide certain collection / recovery services. Charging a percentage of collections for those could be construed as "acting" as collection agency/service. Even if it is legal in your state to do without a surety bond, your fees would need to be LOWER than a collection/agency and service who would also provide such services as skip tracing, credit reporting, etc. For example if XYZ collection agency charges 15% you would not be able to justify charging anymore than maybe 10%. That is another reason I like the flat/fee or hourly rate. When working old A/R without a surety bond you can't offer the other services that would up the stakes as insurance on the amounts to be collected, your blind and you could end up working mega hours and getting nothing in return.
: Re: starting billing for a new provider
: MBP November 09, 2009, 11:45:26 AM
Linda I have started taking a course at medicalbillingcourse.com and i especially enjoy plenty of articles on their website. what a surprise it was when i saw you are the author of some of them! thank you for sharing this way, it is a fantastic source of info!!
: Re: starting billing for a new provider
: PMRNC November 09, 2009, 12:32:09 PM
You are very welcome!  You are in Good Hands with their course! Tammy works long and hard and with such a vigorous passion like myself for this industry! It's places like this forum (Thank you Alice and Michelle) and the many other industry resources like that, that make this a great business!
: Re: starting billing for a new provider
: Pay_My_Claims November 09, 2009, 01:37:16 PM
Linda I have started taking a course at medicalbillingcourse.com and i especially enjoy plenty of articles on their website. what a surprise it was when i saw you are the author of some of them! thank you for sharing this way, it is a fantastic source of info!!

She is the BOMB aint she...........gone blow up girl... ;D