Termination of services between biller and provider.

[StephD]

If a provider gives you notice that they will no longer be using your services how would you determine the final amount that they owe you? If there are still outstanding claims that will pay after services terminate, then do you estimate their final bill?  Especially if you think they may not pay you once they stop submitting charges. 

[PMRNC]

What's your contract say under "Termination" or "out Clause"?

Linda Walker
PMRNC
www.billerswebsite.com

[StephD]

I am working on policies in order to have a contract drawn up.  I just wondered how other billing services handled it.  The billing service that I worked at (way back when) would charge an estimated amount based on the last 3 prior month's collections.  They would average that out to come to a final due total. 

[Michele]

When we finish an account we clean up all outstanding claims and charge our normal fees.  We try to clean things up as quickly as possible to not drag things out.  You are entitled to be paid for all billing that you have done, and your contract should protect you for this.  You may have to get a lawyer. 

Good luck
Michele
 

[midwifebiller]

We have a 90-day "run out" period in our contract. We don't submit any claims after notice of termination, but we continue to follow up on outstanding claims and charge our normal fee. If anything is left after 90 days, we send the provider a report of the outstanding claims. Occasionally we have had a provider who insisted that all work on her claims be stopped immediately and we have made maybe two exception to or 90-day rule, but for the most part it has worked well for us.

~Kelli

[StephD]

Michelle, do you stop submitting claims when they give you notice they will no longer be using your company?

[PMRNC]

Again, you and they have to follow the terms outlined in the contract. if the contract states 90 days notice, usually it is on both sides (they give you 90 days and you give them 90 days)
Without a contract in place you run the risk of working for nothing since there is nothing stopping them from not paying you.
If you do not have a contract, I strongly suggest sitting down with the provider and coming up with one for purpose of transitioning them from your services.. IF you plan on continuing to submitting claims.
In your post you said you were in process of having contract drawn up so I'm guessing you don't have one? If not I don't think anyone here can help you in deciding how to terminate and on what terms since it's after the fact. I would consult an attorney OR just hope the practice will specify terms in ending the relationship.

Linda Walker
PMRNC
www.billerswebsite.com

[Michele]

We usually do continue to send claims until the agreed upon cutoff date.  Our contract states that the working relationship continues for 30 days, however we usually discuss with the office what is going to work out best for both parties in terminating.

Michele

[StephD]

Thanks Michelle.  Linda, I am well aware that I need an attorney to draft a contract.  I was simply trying to find out what other billing services have done that worked for them.  I thought this was a forum for questions.  I am trying to avoid possible FUTURE problems and I know that if it is after the fact it is too late.  Thanks for such helpful input.

[PMRNC]

I misunderstood.. I thought you were in a situation where the provider was terminating services.