Author Topic: Pricing  (Read 917 times)

malyandy

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Pricing
« on: December 21, 2016, 04:43:53 PM »
What do you say to a prospective client if they are really pushy in knowing how we come up with the monthly fee? What do I say when they ask me to specifically explain the price break down?

PMRNC

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Re: Pricing
« Reply #1 on: December 21, 2016, 04:55:04 PM »
It's your business. I know doctors usually don't ask their mortgage company's to break it down, or their accountants, or their utility company. I have never bargained on pricing with a client as it sets a precedence. I'm compensated based on my time.

You can check out our blog post called "Pricing your Services" which might have some ideas for you.

http://billerswebsite.com/medicalbillingblog/?p=167   
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
« Reply #2 on: December 22, 2016, 09:05:03 AM »
What do you say to a prospective client if they are really pushy in knowing how we come up with the monthly fee? What do I say when they ask me to specifically explain the price break down?

I tell the client that there are many factors used in determining a monthly fee:

  • estimated number of claims
  • type of specialty
  • services being performed
  • amount of estimated time
  • any incidental costs (clearinghouse fees, postage, forms, printing costs, etc)
  • estimated receivables
  • number of providers in the group
  • insurances that are billed (do they have a high percentage of workers comp?  Is most of their business Medicare/BCBS?)

There may be other things that you want to add.  But my point is that I tell them that there are a bunch of things taken into consideration when determining the fee.  I would not give them a specific breakdown.  They are either going to think that the fee is appropriate or they are not.  To be honest this may be a sign that they are difficult to work with.  I'm not saying they are, but it may be a red flag.  It is certainly ok for them to question your fee and your method of determining the fee, but the word "pushy" is what is making me think there might be an issue.  You need to have a reasonable fee, but they need to appreciate your service.
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PMRNC

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Re: Pricing
« Reply #3 on: December 22, 2016, 12:23:37 PM »
I use my non-refundable deposit for startup to tell whether a client is going to be a problem or not. I can usually tell they might be difficult if they balk at the deposit. If so I don't lower it, if they don't balk then I will throw in a discount upon signing the contract.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

williamportor

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Re: Pricing
« Reply #4 on: December 26, 2016, 03:56:49 AM »
If you have a prospective doctor-client that insists on a detailed answer on pricing, I'd suggest trying to set up a time when the two of you can discuss their needs. As Michele said, pricing depends on a number of factors. Be clear to them each of the steps you need to go through to meet their needs, and the time required for each.  If they agree to this, you may have a good prospect, if they demand you lower your price without a good reason, or try to rush you through your presentation, you may have to let them go. Just remember. Doctors, Lawyers, and other professionals only give their clients a set price when they have a clear idea of the services their client's require, this eliminates misunderstandings in the future. You need to adopt this habit as well.

-Best of luck  :) 
« Last Edit: December 26, 2016, 06:42:25 PM by williamportor »

PMRNC

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Re: Pricing
« Reply #5 on: December 30, 2016, 09:50:09 AM »
I agree with William, but would add that doing a breakdown should not really include any negotiations of pricing. I never negotiate my fees or my method of charging. I have had clients ask me if I can change my flat fee to a % but once I explain to them the NY law regarding fee-splitting they appreciate it because it legally protects THEM. I don't negotiate my fees but will negotiate the setup fee depending on the potential client. One thing you don't want to do from the start is get a reputation for "haggling".. once you do this, your clients will tell others and it will be difficult to present fair pricing as each practice is different!
I always tell the client they don't negotiate with their attorney's, accountant's, etc.. I'm no different. These are my fees and we can discuss contractual changes if needed.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com