Author Topic: Working AR  (Read 1488 times)

SLITTLES

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Working AR
« on: November 21, 2011, 01:08:47 PM »
Hello all,

I have a client that wants me to work on his aging. Approximately $300,000.00 over 60 days :o;

How do you price for this; I always charge a flat fee rate but I am stumped on how to even figure out a price!!

P.S. - I did search the forum and I do have the Pricing book but PLEASE help...lol

Thank YOU!!
Shontel Littles
" Show Me The Money"

PMRNC

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Re: Working AR
« Reply #1 on: November 21, 2011, 03:48:44 PM »
First you have to determine your state laws. If you are going to be performing same duties as a collection service you'll want to check state laws. Some states require a bond for just "acting" as a collection agency and others want a bond only if your collecting monies. Then you want to check to see if fee-splitting laws apply in your state.  Personally I don't look at any of them and just charge my flat fee but I charge by hour and get paid weekly for those, then I'm always getting paid for all of my time. You have to take into account all of work you will be doing, some might be easy, some not so much. I don't do a percentage for anything anymore across board because I want to be paid for all of my time.  JMHO
Linda Walker
Practice Managers Resource & Networking Community
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SLITTLES

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Re: Working AR
« Reply #2 on: November 21, 2011, 04:26:38 PM »
"If you are going to be performing same duties as a collection service you'll want to check state laws. Some states require a bond for just "acting" as a collection agency and others want a bond only if your collecting monies."

Does this apply for Insurance claims? I would only be working their outstanding insurance claims.
Shontel Littles
" Show Me The Money"

PMRNC

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Re: Working AR
« Reply #3 on: November 21, 2011, 05:27:47 PM »
Quote
Does this apply for Insurance claims? I would only be working their outstanding insurance claims.

No, but if you were going to charge a % you would want to check fee-splitting laws for your state. If you normally do a flat fee, how do you figure your flat fee (What are you basing it on), for example, mine is based on an hourly rate so you could do that if you don't want or can't do %.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

Michele

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Re: Working AR
« Reply #4 on: November 22, 2011, 02:42:56 PM »
I would consider charging for your time, or estimating how long you think it will take and charging a flat fee.  Personally I would go with the flat fee because many providers think that the hourly rate is high.  They compare it to wages they would pay an employee but that's not equal.  For example, if you pay an employee $10 an hour it actually costs more like $15 when you consider taxes.  Also, they don't consider the building expenses, wc insurance, disability, etc.  Plus if they hire a $10 employee they aren't getting the expertise, etc.  Also, the employee may require training, etc.  You get the picture.  I prefer to estimate my time and give a flat fee.  So depending on the types of claims (surgical, family practice, chiropractic) and what the issues were in the office, I would estimate approx how many claims, divide by how many I estimate I could handle in 1 hour, and multiply by my hourly rate.



« Last Edit: November 22, 2011, 02:49:36 PM by Michele »
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SLITTLES

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Re: Working AR
« Reply #5 on: November 22, 2011, 05:36:44 PM »
Linda, I always charge a flat fee and I use the hourly rate calculation.

Thanks Michelle and Linda, I just wasn't sure if I should use the same hourly rate calculation or some other method.
Shontel Littles
" Show Me The Money"