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How much to charge

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rachel:
"In the past I have had clients who were not accepting no new patients, but I knew ahead of time so their pricing was set and would stay that way with the exception of a general cost of doing business increase once per year and that is in all my contracts. Each contract is different but everything is spelled out. Even for the practices that i know are not routinely accepting new patients it's still in their contract that if they do there is an increase and what that increase is and the volume of increase. Just to give yo an idea, one of my clients is a psychiatrist and he is growing his practice which is fairly new, so his volume when we started last month was low but he's increased his patient volume with 9 new patients, his contract allows me to adjust upwards at 6 clients so he's already had one increase. But he is happy, he started out 7 months ago and wasn't able to increase his patient base because he was bogged down with the billing, so he benefits as do I. "

Linda, in regards to the above statement, I was wondering how much you would suggest charging for this particular scenario - per month that is?  I have a similiar situation and did a %, however, given all the chatter, it seems as if I may need to switch over when contract is re-uped...I am unsure how to calculate what to charge...he is strictly Medicaid at this time and adding new patients pretty consistently.  He is very happy with our situation as he had not collected a dime for the last year for all of his work!  Thanks!

PMRNC:

--- Quote ---Linda, in regards to the above statement, I was wondering how much you would suggest charging for this particular scenario - per month that is?  I have a similiar situation and did a %, however, given all the chatter, it seems as if I may need to switch over when contract is re-uped...I am unsure how to calculate what to charge...he is strictly Medicaid at this time and adding new patients pretty consistently.  He is very happy with our situation as he had not collected a dime for the last year for all of his work!  Thanks!
--- End quote ---

I don't do pricing unless I have done a full practice analysis, then my formula is based on what I want to make an hour after costs,  hours needed (avg) per account.  For example, I try to obtain $25-$30 per hour per client, if I estimate it will take approximately 25 hours per week on that account the monthly rate would be $625 @ $25 p/hour and $750 @$30 per hour. Then I add additional costs (postage, claim forms etc) which I would gather from doing a practice analysis.. and then there are the increases on clients adding new patients and again, this depends on the practice analysis, specialty, and averages gathered.   Now if you are new or not experienced you might not be able to use this formula because it's based on hourly rate. The first figure I come up with when figuring out pricing for ME is WHAT I WANT TO MAKE!
That number is NORMALLY what I want per hour. Someone with none to little experience may only be able to go for $10-$15 per hour, it really depends on all the variables in place.

rachel:
Thank you very much, that breaks it down and I pretty much was thinking something similiar but was unsure if that would be a viable option!!!!  I am newer to this business although I have related work experiance.  I am trying my hardest to not be one of those fly by night outfits and want to do the correct thing.  Thanks for the reassurance!

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