Author Topic: Start Up fee  (Read 1388 times)

QueenAlicia

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Start Up fee
« on: December 14, 2010, 06:51:37 PM »
I am debating on charging a start up fee. I have read the book on writing a kick butt contract but I am on the fence on charging one.  What is the benefit or cons to do so?  I do know some benefits based on the book but in you- the experienced  biller/owner what is the benefit in your opinion. 

Thanks in advance guys! :)

Alice Scott

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Re: Start Up fee
« Reply #1 on: December 15, 2010, 05:49:03 AM »
I have to say that researching and writing that book made me rethink several things we had in our contract.  Set up fee was one of them.  We have never charged a set up fee before but writing the book made us decide that we would start.  There have been some great suggestions here on the forum about how to do it.  The reason we decided we added a set up fee to our contract was because in writing the contract book we reviewed everything that ever went wrong between our clients and us.  We remembered several clients who had no intention of using us long term but were not up front with us.  Starting a new account takes a lot.  You may have a set up fee with your software vendor, you have to add all the information on the provider including new patients, codes, insurance carriers, etc.  Much time is spent with a new provider just working out an efficient system of working together.  You can offer to refund the set up fee after 12 months.  That way if things don't work out at leasy you get paid for the time you spent at the beginning.
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PMRNC

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Re: Start Up fee
« Reply #2 on: December 16, 2010, 08:37:54 AM »
I look at my set up fee as MORE than just money/costs associated with setup of the client. I also look at it as a "security" payment. MANY billing companies will be brought in to clean up a mess, or maybe to cover for a leave of absense and they won't know it until they have done all the work in setup and then they are released by the provider because they don't need you anymore. Another reason I think of it as a security is as a measurement of the practice's professionalism and ethics.  I usually set my setup fee as 50% more than what I think it should be, I will then talk with the client about it, go over their practice, needs, run an analysis and quote them a fair price, IF they hang on the setup fee, or they turn me down because of the setup fee then there's a good chance it's a practice I DO NOT WANT anyway.  If they don't balk, then I use it as an extra marketing strategy and will give them a contract and tell them I will waive 50% of that setup fee if they sign by a certain date (usually 2-3 business days).

I have never NOT charged a setup fee. I wouldn't either not even for the smallest provider. I have charged anywhere from $100 to $5000 start up fees depending on the client, work involved, and current setup of their billing.
Linda Walker
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QueenAlicia

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Re: Start Up fee
« Reply #3 on: December 20, 2010, 12:01:01 AM »
Okay thanks, really good advice. I have decided to charge a set up fee.  I am just going to wait after the first initial meeting in going over the practice to determine the fee.

medauthor

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Re: Start Up fee
« Reply #4 on: December 20, 2010, 12:03:08 AM »
Quote
Okay thanks, really good advice. I have decided to charge a set up fee.  I am just going to wait after the first initial meeting in going over the practice to determine the fee.

EXCELLENT decision!!!
Michelle Rimmer, CHI, CPMB
President-Professional Medical Billers Association
Owner-ABA Therapy Billing Services
Author, 'Medical Billing 101' and 'Coding Basics: Understanding Medical Collections