Starting a Medical Billing Business > Starting Your Own Medical Billing Business

Income Expectations

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PMRNC:

--- Quote ---OMG - I had no idea I could charge that much! You've made me really happy!  ;D

--- End quote ---

This is one of reasons I only base the flat fee on the hourly and the client doesn't see it. Providers will see $45 or $50 an hour and may initially be put off. Think of it this way. Your goal is to obtain clients and show them savings in hiring an outsourced solution right? Most practices need one or more billers and or additional hands for full support of the billing process in their offices. You'll base your hourly rate on perceived value and workload. A solo mental health professional may be a smaller hourly rate of $35 an hour, but they won't need any billing staff, maybe only someone to do scheduling and/or reception duties. You are still saving them money. Likewise a practice of three providers may need 2-3 billers in the office making let's say $12 an hour, payroll taxes, benefits, sick pay, etc. If you went in at $55 an hour they will still be seeing a significant savings. Next, you need a sliding scale to accommodate the practice growth. To do this using the model I do, determine how many claims on the average you can comfortably do in one hour. That will be your sliding scale. For example, if you can do 10 claims in an hour and my hourly rate your basing that flat rate is $55, your sliding scale would be for every new 10 patients, the flat fee is adjusted up $55. This looks like this:

You average 50 hours weekly at $55 an hour (client does not see)

50 X $55 = $2750.00 per month.  + Add expenses = Total Monthly Flat fee   For every 10 new patients the monthly total is increased by $55.

Michele:
I agree with Linda.  $20 per hour is too low.  You have to remember that when you are paid by an employer they have a tax burden that when you are self employed falls onto you.  So $20 for someone else has to be at least $26.  There are also so many other things that have to be considered so $20 or even $26 is really low.  That is also why I would also never let the client know the rate you use determining the flat fee.  They would only look at that number and think "I can hire somebody in the office for way less!"  But they are paying for your expertise as well as many other things like supplies, ink, printing costs, electricity, computer, cost of having a person in the building basically.  ALL of that must be considered!  Don't sell yourself short...............or cheap!

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