Author Topic: Service Pricing  (Read 2553 times)

mbloom

  • Newbie
  • *
  • Posts: 44
Service Pricing
« on: June 11, 2012, 11:57:59 AM »
I am having such a dilemma with pricing. The client does not want to pay a percentage of collections but an hourly rate, to me, would be too little unless I charge a large hourly rate.

The situation is its a hospice center with about 11 people on census. The billing itself may take me about 3 hrs a week and the follow up work about another 3 hours a week. I offered other office work as well such as management and accounts payable. SO, this may tots about 10 hrs a week of actual work but my billing efforts will bring her in anywhere from 12k to 30k weekly.

What should I do? Have any of you every charged hourly before and if so in what range. Is $30/hr too much?

HELP!

PMRNC

  • Hero Member
  • *****
  • Posts: 4218
    • One Stop Resources & Networking for Medical Billers
Re: Service Pricing
« Reply #1 on: June 11, 2012, 04:33:41 PM »
Without knowing your experience or area it's hard to say if $30 is too much.  I can tell you that I would never go back to % based billing and that it's MUCH more practical and efficient to do a flat monthly fee.  Here's a secret though.. YOU do NOT have to disclose that hourly fee.   You decide what you need to make an hour, estimate how many hours you need, add your costs and voila.  Create a sliding scale to accommodate the practice growth along with your increase work load. For example, you might know you can comfortable do 5 patient's an hour so if your monthly fee is based on an hourly rate of $30 you would add $30 upon the addition of every new 5 patients.  Again, you do NOT have to disclose your hourly rate.  You figure out the monthly rate, present it and if asked you tell them the fee is all inclusive of your time and costs. That's it!    BEST PART is you get paid for all of your work!!   Now where it gets a little tricky is if you don't have enough experience to justify a higher rate so again, it really depends on the type of provider, how much time is needed, any special circumstances and the billers experience.   This is strictly billing. I charge consulting rates for all other services such as credentialing, P&P review, compliance issues, training, etc.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

QueenAlicia

  • Sr. Member
  • ****
  • Posts: 347
Re: Service Pricing
« Reply #2 on: June 20, 2012, 02:24:00 AM »
I agree with Linda that you do not need to let the provider know how much you charge an hr.  Flat fee is much better and the provider is trying to cheat you of money. So what if it takes you three hours a week it still accounts for your time which may include getting on a phone and checking on insurance.
Remember your business takes many of the costs away from the providers. It's your right to charge what you want and remember don't let someone back you down. 

DMK

  • Hero Member
  • *****
  • Posts: 680
Re: Service Pricing
« Reply #3 on: June 20, 2012, 10:40:20 AM »
Billing by percentage would kill me!  Some of my lowest paying insurance companies take the most time to get a claim paid!

QueenAlicia

  • Sr. Member
  • ****
  • Posts: 347
Re: Service Pricing
« Reply #4 on: June 20, 2012, 01:18:27 PM »
If I billed by % it would kill me too.  Sometime my providers only receive $25 for their visits. 


PMRNC

  • Hero Member
  • *****
  • Posts: 4218
    • One Stop Resources & Networking for Medical Billers
Re: Service Pricing
« Reply #5 on: June 20, 2012, 03:57:59 PM »
One of the things we have to remember is that we are BUSINESS OWNERS. I ask a client who hims and haw's over pricing "Would you call and question the electric company over the prices of your electricity? Would you question your Mortgage company about your mortgage payment? would you question Kinko about their per copy charge?  the answer is NO.  We are NO different than any of those services in that regard. We do NOT need to explain charges beyond market value. If we do, it looks unprofessional and it takes away the credibility for the entire industry. The minute you have another billing company swoop in and say we'll do it for 4 % (yes this company exists, they are vultures) that undercuts us completely. STICK with your charges, stand your ground and do not appear to be desperate. YOUR time is JUST as valuable.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

QueenAlicia

  • Sr. Member
  • ****
  • Posts: 347
Re: Service Pricing
« Reply #6 on: June 22, 2012, 02:46:45 PM »
Yes, and we also want our business to make money.  We work hard and we don't want our businesses to just take care of our overhead costs but to also help us keep our lights on.

galley

  • Newbie
  • *
  • Posts: 3
Re: Service Pricing
« Reply #7 on: July 09, 2012, 08:23:47 PM »
Can anyone help me on how to charge a flat fee.  I would like to be able to write a contract based on a flat fee rate.  Is it possible to base it upon the amount of claims processed or is that something you do after the office is interviewed?  I hear a lot about % versus flat fee, pros and cons.  I want to charge a flat fee because I want to get paid for all work performed.  I would appreciate any help and all suggestions.

PMRNC

  • Hero Member
  • *****
  • Posts: 4218
    • One Stop Resources & Networking for Medical Billers
Re: Service Pricing
« Reply #8 on: July 10, 2012, 12:20:34 PM »
I have outlined how to do this in several posts here on the forum. Do a search for flat fee billing and I'm sure it will come up. I also have it broken down in our members only area, if you are a member you can find it in our learning center under pricing your services. There is a very simple formula where basically expenses are added in with your hourly rate and an estimate of time required for that particular client, but again, if you search the forum here you will find a more detailed post with even example.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

galley

  • Newbie
  • *
  • Posts: 3
Re: Service Pricing
« Reply #9 on: July 11, 2012, 06:44:13 PM »
THANKS FOR THE INFORMATION BUT I AM NOT ABLE TO LOCATE ANYTHING ON THIS FORUM ACCEPT WHAT YOU HAVE WRITTEN IN RESPONSE TO ME.    I AM A MEMBER AND I HAVE LOOKED FOR THE LEARNING CENTER AND ALSO CAME UP WITH NOTHING.  I AM NEW TO THE FORUM AND POSSIBLY DON'T KNOW HOW TO USE.  I AM ABLE TO READ POST ABOUT FLAT RATE PRICING FROM OTHERS BUT NOTHING IN DETAIL WITH A FORMULA.  MY UNDERSTANDING IS THE TIME AND COST IT WOULD TAKE YOU TO PREPARE A CLAIM BASED UPON HOURLY RATE.  I'M NOT QUITE SURE AT THIS POINT HOW LONG IT WILL TAKE ME TO PREPARE A CLAIM.  I AM A BILLER IN A MEDICAL OFFICE AT THE PRESENT.  ITS HARD TO ACCOUNT FOR MY TIME BECAUSE I'M DOING SO MUCH MORE IN BETWEEN PROCESSING CLAIMS THAT I WILL NOT BE RESPONSIBLE FOR WITH MY BUSINESS.  IF I COULD FIND THOSE EXAMPLES YOU SPOKE OF, WITHIN THE FORUM OR LEARNING CENTER MAYBE I CAN FIGURE SOMETHING THAT WOULD BE GOOD FOR ME.  I'M STILL CONFUSED