Author Topic: Pricing my biling service  (Read 1923 times)

atwmedbilling

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Pricing my biling service
« on: January 21, 2016, 02:10:32 PM »
from my research Arizona is one of the state that doesn't let to split bill so I put together a flate fee I wanted to know what your thoughts was
0-1500 in A/R 1000 monthly
1500 - 2000 in A/R 1500
 and so on would it what better if it was amount of claims ?
Do you include appeals denials payment posting in that monthly fee ?

Michele

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Re: Pricing my biling service
« Reply #1 on: January 21, 2016, 08:00:54 PM »
I think your numbers must be off a little.  You said you would charge $1000 for up to $1500 in monthly A/R?  That's 66% of the max. 

Anyway, our flat fee includes everything that the client will need.  Some of our clients only want claim submission.  Others we do full service.  So we base our flat fee to include all services that we will be performing.
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atwmedbilling

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Re: Pricing my biling service
« Reply #2 on: February 07, 2016, 08:36:03 PM »
What is a good way to use a flat fee ?

Michele

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Re: Pricing my biling service
« Reply #3 on: February 10, 2016, 11:20:09 AM »
This is from a previous post by Linda:

"There have recently been a few threads on this.  How I do it is based on hourly rate, what I want to make per hour. My formula goes like this:

For this example I will use an hourly rate of $25 p/hour.

I determine the amount of time I will need per week per client (estimated). This is easy if you have been billing for the provider and it's always a good idea to calculate how much time you spend on each client no matter how you are charging. For this example we will say this provider will take or takes 12 hours per week.

I then add up my expenses PER client (this should NOT include any fees for the cost of doing business such as computer, attorney, books, education, etc) only costs such as clearinghouse, postage, phone, claim forms, software per client fees, envelopes, ink, paper, etc.. should be included in these costs.  For the sake of this example we will use an estimated cost of $500

I then take my hourly rate of $25 and multiply it by 12 hours per week=$300 per week X 4 weeks= $1200 per month
I then add my estimated costs for each month $1200 + $500 = $1700 monthly flat fee total.

To create the sliding scale I then break down (again estimating) how many patients/claims I can comfortably do per hour. For this example I will use 8 patients. That will equal $25 (hourly) per every 9 patients added.  That will allow you to continually get paid for your time and allow for growth of the practice. Remember to increase you "costs" and I do this once every 6 months as per my contract.

Nice and simple, and biggest factor is I get paid for all my work. :)"


We also use another formula as well:

Take the estimated or average receivables for that client per month.  Multiply that amount by the average percentage for your area (6%, 7%) and compare it to the number you got from the previous formula.  It's a great way to double check and make sure you are in line.
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PMRNC

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Re: Pricing my biling service
« Reply #4 on: February 10, 2016, 11:57:25 AM »
Quote
We also use another formula as well:

Take the estimated or average receivables for that client per month.  Multiply that amount by the average percentage for your area (6%, 7%) and compare it to the number you got from the previous formula.  It's a great way to double check and make sure you are in line.

You want to be careful with that formula, for example NY State is VERY clear that physicians cannot only enter into a fee-splitting arrangement, the arrangement cannot even be BASED on a formula to split fees.
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: Pricing my biling service
« Reply #5 on: February 12, 2016, 10:11:37 AM »
Good point Linda.  I know I mentioned it but it needs to be clear.  We don't use that formula to calculate the fee, we only use that as a way to double check to make sure we are not too far off base with the other.  When you are unfamiliar with calculating flat fees it can be a bit overwhelming, wondering if you are in the right ball park. 
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PMRNC

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Re: Pricing my biling service
« Reply #6 on: February 16, 2016, 07:35:37 PM »
Quote
Good point Linda.  I know I mentioned it but it needs to be clear.  We don't use that formula to calculate the fee, we only use that as a way to double check to make sure we are not too far off base with the other.  When you are unfamiliar with calculating flat fees it can be a bit overwhelming, wondering if you are in the right ball park.

Yes, completely understood, I was just making sure it was clear that formulation in such a state as NY was NOT indicative of percentage based.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

atwmedbilling

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Re: Pricing my biling service
« Reply #7 on: February 18, 2016, 12:27:41 PM »
Thank you so much for your feedback I was unsure how to go about setting up a flat fee .

Tameka79

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Re: Pricing my biling service
« Reply #8 on: August 03, 2016, 03:17:31 PM »
Good Afternoon,

I've noticed that people are saying that some states don't allow you to charge the provider a percentage of what they make montly.  How do you know which states do or don't allow this? I live in the US Virgin Islands so I would like to know who I should speak to. 

Michele

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Re: Pricing my biling service
« Reply #9 on: August 03, 2016, 06:21:23 PM »
Legal is not my area of expertise but I found the following application for physicians to practice medicine in the US Virgin Islands:

http://www.fsmb.org/Media/Default/PDF/FCVS/FCVS_usvi_physician_application.pdf 

Page 10 has a statement regarding fee splitting.

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