Author Topic: Start up fees  (Read 2590 times)

ChristineS

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Start up fees
« on: May 13, 2009, 01:49:35 PM »
For those of you who use start up fees, how much do you charge and how do you explain it to the provider?

PMRNC

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Re: Start up fees
« Reply #1 on: May 13, 2009, 05:26:05 PM »
Depends on the practice, I've charged as little as $100 and as much as $3000. I can tell you that I never EVER EVER waived the full setup fee, it's like a security deposit (non-refundable) to prevent being taken advantage of. What I have done however is give them a time frame; for example, I might say, if you sign my contract by the 15th of the month, I will deduct a $100 from the setup fee.
The larger setup fees of course are more for the larger practices; high volume, high turn-over and lots of data entry.
My smaller clients would pay an average of $300-$400 in setup and again I would deduct a little from it to entice them into signing soon. But I've never waived a setup, I saw too many billers get used for a few months of work and never get paid.

Linda Walker
PMRNC
www.billerswebsite.com
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

ChristineS

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Re: Start up fees
« Reply #2 on: May 14, 2009, 11:01:35 AM »
If it is for a chiropractic clinic with one doctor do you think $300.00 would be fair?

PMRNC

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Re: Start up fees
« Reply #3 on: May 15, 2009, 06:53:52 AM »
Have you taken a look deeper into the practice? Average Reimbursements, common denials, patient volume, claim volume, unfilled claims? clearinghouse fees, what costs you will have off the top in setting them up, etc.
You have to really look at the whole picture before you can quote them, this way you don't lose money to take on the client.

Linda Walker
Practice Managers Resource & Networking Community
"One Stop Medical Billing Resources"
www.billerswebsite.com
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

carnilent

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Re: Start up fees
« Reply #4 on: May 18, 2009, 12:29:26 PM »
I have had to waive my start up fees.    The Docs did not want to pay at all only a percentage of the amount collected.
 >:(

PMRNC

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Re: Start up fees
« Reply #5 on: May 18, 2009, 05:34:25 PM »
Quote
I have had to waive my start up fees.    The Docs did not want to pay at all only a percentage of the amount collected.

That is your first warning sign this is not going to be a good client.
I've never waived a setup fee.. EVER. The setup fee .. and the provider's waiver or lack of interest in that.. is a first sign of problems!

I've seen many billing companies lose big on this issue.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

Pay_My_Claims

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Re: Start up fees
« Reply #6 on: May 19, 2009, 06:48:06 AM »
I would have to agree with you Linda. If you choose to use start up fees, you should never waive them. If you are doing a sign up today "no set up fee" special, that is another thing. To go in with a set up fee and waive it, shows the provider that he can manipulate your company. It gives the impression that you "need" him and not the other way around. 

carnilent

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Re: Start up fees
« Reply #7 on: May 19, 2009, 12:27:58 PM »
I have posted on my website no set up fees   (  limited time only )


I will make that our May special.   From there on I will start charging again.


thanks for all the help.



carnilent

PMRNC

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Re: Start up fees
« Reply #8 on: May 19, 2009, 02:36:37 PM »
JMO, but I would NEVER waive a full setup.. ok to offer a small percentage off but blindly offering to waive setup could be be seen as desperate as it's not really reasonable. Your offering to work for free and setup is a lot of work. It sends a message and some will take advantage of it.
It's also a good idea not to mention more than "how" you charge in your materials, this presents you with the opportunity to get more information in order to professionally and fairly review services and come to a pricing arrangement based on the practice's needs.

JMO
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com