Starting a Medical Billing Business > Starting Your Own Medical Billing Business
Fees
jcbilling:
I currently bill all of my clients on a percentage basis, and at this point will continue to until I have a client that is in a state that prohibits that.
When I have met with prospective clients, one of the biggest reasons they choose to hire a billing service vs. an employee is that they feel like they pay the employee whether or not the work is done correctly and promptly. Where as if a billing company is compensated for what they collect, they are more motivated to do a more accurate and efficient job.
I've been contemplating the idea of flat rate, but I'm not convinced it's the most fair way to go.
My question is, what are the benefits of not charging %?
Pay_My_Claims:
It can also be said (reason why they prohibit fee splitting) is that it is a motivation to upcode, file false claims etc. As far as them hiring a biling service, there are many that have their own that can't bill or code. They are killing the home-based billing services. When I calculate what I charge as to what is reimbursed by the insurance company each month....I may WAYYY more than anyone billing on 7-8% fee schedule. The average biller in my area makes about 15.00 per hr Which is 2400 a month before taxes. Depending on a physicians revenue she is already making a % of his revenue. If he is bringing in about $30,000 a month she is getting paid 8% If a provider is paying me a flat fee of $2500 a month, he would have to go way above his average for me to lose money doing % billing, but the month he drops down to 20K, I still do well. I don't knock it, but I know % billers lose more than flat fee billers. I have a lot of % billers who get screwed royally
gderilus:
Wow Pay my claims, I just realized that your business name is almost the same as mine. My company name is AccuMed Billing Solutions, LLC. I'm still working on my website.
PMRNC:
--- Quote ---When I have met with prospective clients, one of the biggest reasons they choose to hire a billing service vs. an employee is that they feel like they pay the employee whether or not the work is done correctly and promptly. Where as if a billing company is compensated for what they collect, they are more motivated to do a more accurate and efficient job.
--- End quote ---
This was and will always be an issue, but my response to this very thing is that who care.. who's business is it? I decided a long time ago that ALL of my time is worth getting paid. I have clients in other states where I can bill a % but I choose not to, my time is just as valuable and the practice STILL saves money, everyone wins. But again.. I do not justify what I charge or how I charge. You wouldn't challenge your cable company or your phone company and tell them you want to pay them on a % would you? If you did they would laugh but you'd be told the same thing. These are our rates and this is what we charge. I got tired of billing for just when I collected when it was the fault of the office for not doing their part that led to the lower reimbursement and let's not forget that more than half of what we do is education..not just billing, Every moment of my time is worth getting paid. If a provider does not want to compensate me then he won't hire me and I don't want them anyway.
jcbilling:
Charlene -
I understand what you're saying about upcoding and falsifiying claims. Although I consider my services very professional and work hard to stay compliant, I realize there are billing services that are just trying to "get rich quick" and therefore give the rest of us a bad name. I guess I have a mental block because I have read so many marketing materials engraving in my head why % billing is beneficial to the provider.
Linda -
You make a good point about not getting paid on the claims that are not the fault of our billing. I have a client who has 3 offices that we bill for. The one office refuses to verify insurance benefits because the receptionist "doesn't have the time" and since the provider is out-of-network, we have so many claims going to the deductible and they don't collect the payment upfront. So the provider is losing money and so am I. I have talked to the provider multiple times about this and he shows no effort to change. It makes me so frustrated, because we spend time sending the claims knowing they won't get paid.
My next question is how do you determine what you charge a client on a flat rate plan? I know there are many factors, such as overhead costs, your time involved with the account, etc. Do you make a itemized fee schedule? Or do you just present a charge and negotiate...or do you not negotiate?
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