Starting a Medical Billing Business > Starting Your Own Medical Billing Business
Analyze this
PMRNC:
--- Quote ---I just wish I could afford to visit you folks in NY and see how you operate. I'll bet I'd learn a lot. Maybe someday :-\
--- End quote ---
William, I'd be happy to talk to you more about how I do my flat fee pricing. You can send me an email to: linda@billerswebsite.com When I was in NJ and PA I did % based billing but when I went to NY I had to have a different way, but in the long run it's been more profitable!
williamportor:
Thanks, I'll get back to you soon via email.
Michele:
--- Quote from: PMRNC on September 19, 2017, 04:25:54 PM ---I have a different opinion, since I do charge a monthly fee it is based on how much I work. I couldn't measure how much I make by a provider's revenue as I'm in a state that prohibits fee-splitting so my fees cannot be even remotely related to the revenue of the practice. With that said, it's much easier to do a flat fee with sliding scale because then I can CHOOSE how much I want to make per hour and the provider NEVER sees that amount. For example, if I know a client is going to take 10-15 hours a week and I want $50 an hour, then their monthly flat fee will be approximately 500-750 a month. I also know how long it takes me to submit claims so the sliding fee would accommodate new patients by the amount of claims I can produce in the hour.
This has worked great for me as I get paid for every single hour I work. I get paid for everything including making a phone call and I'm making exactly what I want to make and working the hours I want to work. :)
--- End quote ---
We charge a flat fee to our clients as well since we are also in NY. The point I was making is that one person working 40 hours per week should be able to bring in $6000 - $9000 per month which would work out to $37 - $56 per hour. $1350 per month is too little for someone working 40+ hours per week. That is way less than minimum wage. You need to keep in mind that your hourly fee has to include the cost of doing business which includes medical insurance and taxes that are normally paid by an employer. So if you would be willing to work in an office for $15 per hour you would need to make more like $25 per hour to cover the cost of doing business.
PMRNC:
Costs of doing business are not passed on to the clients, or rather they shouldn't be. Things like training, coding books, accountants, lawyers, etc. The only "costs" to a client should be the costs associated specifically to the client such as claim forms, envelopes, printer ink, phone, fax, etc. You only want to add in the costs of those things the client utilizes, your "costs of doing business" are other items that the client would not need to pay for at all as a benefit to outsourcing.
Michele:
--- Quote from: PMRNC on September 20, 2017, 07:59:46 PM ---Costs of doing business are not passed on to the clients, or rather they shouldn't be. Things like training, coding books, accountants, lawyers, etc. The only "costs" to a client should be the costs associated specifically to the client such as claim forms, envelopes, printer ink, phone, fax, etc. You only want to add in the costs of those things the client utilizes, your "costs of doing business" are other items that the client would not need to pay for at all as a benefit to outsourcing.
--- End quote ---
Linda is right. I should have chosen a better phrase for the expenses I was referring to. I just wanted you to take into consideration that when you are working on your own you are responsible for your own taxes and other expenses that an employer covers when you are working for someone else. A lot of people make the mistake of thinking "I can't charge $35 an hour! That's not fair." When an employer hires someone they pay about 30% higher than the hourly wage just to handle payroll. And then there are other things to consider.
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