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

Few Questions....

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laurajean412:
I'm sorry I meant to say I was going to be charging on the amount collected, my mistake. What percentage is good to shoot for? Also I'm trying to figure out how to word the Contracts, anyone have any examples? Does anyone charge a start up fee? How much is average to ask for a start up fee?

Thanks again!

Pay_My_Claims:
No problem, we all make slip up's. It would vary on your area. I have seen charges from 3%-8% of the revenue collected. I charge my pediatrician a percentage fee of 5%. I do some flat fee charges for DME since that is a different situation. It's high-end custom Rehab so there is a %fee based upon claims under 10k, and a flat fee for claims over 10K (received) For a DME provider that has a large volume of the high end rehab, I would have to do an overview of his current AR and negotiate a fee.

PMRNC:
You will also want to make sure you are not in one of the states that prohibit physicians from entering a percentage based (fee-splitting) arrangement/contract.

I've always charged a setup fee, ranging from $100 to $3000 and more, depending on the practice, amount of work involved, etc. My startup fee is also like a security deposit (Only not refundable).
I will discount the setup fee as an incentive for the provider to sign my contract but have never waived it completely.

gderilus:
how do i find information about which state prohibit physicians from entering into a percentage based arrangements/contracts .
I live in Florida, and I tried to google it but didn't find anything

PMRNC:
Florida is one of the states where it's actually nearly cut & dry that it's considered illegal fee-splitting. You want to make sure when pricing your services you do not base them on a percentage or even a perceived notion of percentage. The states where there are actual cases on the books and the law is clear is Florida, NY, & Illinois. A few other states have similar laws but with some "grey" area.
 
Here is the verbiage from the Florida Law:

The basis for the final order appears in F.S. 458.331(1), which sets forth a list of acts or
 omissions for which the board may take disciplinary action against a physician's license.
The list includes 458.331(1)(i), which prohibits "paying or receiving any commission,
bonus, kickback, or rebate, or engaging in any split-fee arrangement in any form
whatsoever with a physician, organization, agency, or person, either directly or
indirectly, for patients referred to providers of health care goods and services . . ."

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