Starting a Medical Billing Business > Starting Your Own Medical Billing Business
Flat Fee vs. Percentage
KLA:
Good Morning Ladies
Let me first say.... Great forum and chock full of goodies! YEAH!!
My question is can some explain the difference between billing your clients % of net collected and flat fee - what is flat fee and how does it work - what are you invoicing them off of - per claim? It seems tedious? Please help, I really value all your info!
Michele:
Billing a % is determining your fee after the providers collect and it is a set % of what is collected. A flat fee is the same fee each month and is preset. Many people use the provider's average receivables, or average amounts billed out to determine their flat fee. Others estimate the time of work they will be putting on, others bill based on the average number of claims that are submitted. If you are used to billing a % it can be tough switching your thought process. But % billing is illegal is several states. Many billing services still do it that way and it is sometimes hard to explain it to the provider, but flat fee billing has many benefits.
Michele
KLA:
Thank you so much Michelle - My company is in the process of switching over to the flat fee becasue we bill in multiple states and I don't want to have a legal issue - I think NJ is a sticky one and that is where alot of our providers are. I have sinces moved to SC and am trying to acquire some practicioners here but it is quite different. The marketing here is not as aggresive apparently!
Pay_My_Claims:
My first provider was from SC. They are neurology, but they started supplying dme equipment (AFO?KAFO's) and hired me to bill that portion out. She was obtained via a Craigs List ad. :-)
KLA:
Charlene,
Thats great! Where in NC are you? -Raleigh? Thats about 2 hours from me I think. I was saying in my other post, I have a few meetings coming up with mental health - I really haven't done much of that myself and the biller who did do this in NJ wont be doing that here. Do you have mental health clients? DME is always a treat! I enjoy doing that too! Good for you getting the response from craigslist. What do you do - respond to a job posting?
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