Author Topic: Flat fee vs Percentage  (Read 2015 times)

asilva03

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Flat fee vs Percentage
« on: September 27, 2011, 09:51:46 PM »
I had a very interesting conversation with a potential client, or who I thought was a potential client, today.  He stated that he believed that a person working on a percentage would be inclined to work harder than a person who works on a flat fee.  I had to chuckle a little at that because I that it was completely false and what does that say about his past employees since they were paid an hourly rate regardless of the work they did.  I think those who get paid on a flat rate basis are just as inclined to work harder than the person who works on a percentage.  I have to admit I was a little offended, but then had to realize that he is a physician and not a biller and doesn't understand. 

Just thought I would share with the group.   ;D

Michele

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Re: Flat fee vs Percentage
« Reply #1 on: September 28, 2011, 07:10:26 AM »
I think that is a common misconception in this field.  However, I too disagree.  I think it comes down to work ethic.  Those who have good work ethic will work hard and those who don't, won't.  Those who charge a flat fee know what they are worth and value their time.  Like you said, by believing that they must believe that all of their own employees were not motivated.  Also, by charging a percentage what incentive is there to waste time on resubmitting a secondary claim 2 or 3 times when needed.  The % of $6.97 certainly doesn't make that worth it!  I think the % can actually encourage some to be more sloppy and only go after the larger amounts.  Just a thought!
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DMK

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Re: Flat fee vs Percentage
« Reply #2 on: September 28, 2011, 10:57:14 AM »
"Also, by charging a percentage what incentive is there to waste time on resubmitting a secondary claim 2 or 3 times when needed."

Michele, you hit it on the head.  A person with a GOOD work ethic does things right the first time so they don't have to do it again.  On percentage, that's just a waste of time!  On hourly, it's a waste of effort.

This isn't piece work!  Do a good job, or let someone else to a good job!

PMRNC

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Re: Flat fee vs Percentage
« Reply #3 on: September 28, 2011, 11:28:19 AM »
I agree too.  Another thing to consider is the OIG's stand on this.. the incentive based billing model is exactly what entices and invites fraud and which is why the OIG has been pushing to eliminate it.  Aside from that I try not to engage in this conversation because IMO it's just common sense.. I work you pay.. it's what makes world go around and my time is worth it.

Linda Walker
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midwifebiller

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Re: Flat fee vs Percentage
« Reply #4 on: September 28, 2011, 11:02:44 PM »
After using the percentage model for over a decade, we are slowly converting all of our providers to a flat fee.  (It took us quite a long time to figure out how to do this, and what those fees would be.)  So far, I love it! 
Kelli Sugihara, CPMB
Midwife Billing & Business, LLC
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Michele

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Re: Flat fee vs Percentage
« Reply #5 on: September 29, 2011, 07:59:20 AM »
  Do a good job, or let someone else to a good job!

Amen!  I don't EVER go out to take an account from another billing service....EVER.  However, with that being said, if they aren't doing a good job and the provider is seeking someone who will do better, that's a different story.  I always make sure I get to the bottom of the story though, and make sure that its a service not doing their job and that it's not the providers fault.
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