Starting a Medical Billing Business > Starting Your Own Medical Billing Business
Flat Fee vs. Percentage
Pay_My_Claims:
Yes in the big Capital!! SC is about 3-4 hrs away depending on where you are. Greenville SC is right on the border of Charlotte. Yes I do mental health, and currently doing SAIOP billing on the UB04. He was also a craigs list client. He was seeking some help billing his claims. Wanted help with Blue E, well I helped him, ended up doing a PAID inservice for him and the staff, and that turned into a signed contract!!
Yes I simply reply to the ads that are posted. I have run into only 2 that were seeking to outsource from the ad. Most are seeking in-house billers, however what I send to them intrigues quite a few. Its like anything else, hit or miss. Some are receptive, some are not, however it has been very lucrative for me, so I wont' complain about craigs list.
KLA:
Good for you. My hubby and I are always in NC - we should have a meeting of the minds some day!
Pay_My_Claims:
i have a twisted mind....LOL
PMRNC:
--- Quote ---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!
--- End quote ---
There are actually a few formula's you can use for flat fee billing. The end of the formula always turns out where you get paid for all the time you put in which is the nice part of flat fee billing. The formula I use is based on hourly rate. If you have less experience (meaning your hourly rate may do your flat fee justice) than you can use a 6 or 12 month analysis of receivables, claims etc. For me I start out with what I want to be paid per hour $25/$35 an hour. I estimate the time it will take, hourly rate I want to make, add expenses for that client (postage, clearinghouse, paper, ink, phone, etc) and there you have it. Here is a rough example:
Based on $25 per hour: Estimated time for client per week = 15 15X$25=$375 X 4 weeks = $1500 + Expenses $300 = $1800 per month.
I also use ACT which allows me to time my work by provider so that I can run my own reports to make sure I am accounting for all my time. I simply hit the timer in that clients database, work strictly on their claims and/or calls, etc and whenever I stop, I pause the timer. At the end of the month I run reports and I can see if/where I am losing money. ;D
I also use a sliding scale. If I can enter let's say 5 claims/ 5/patients in an hour, that's $25 per hour, so i would charge the client an additional $25 for every 5 new patients.
If I am doing consulting also with the same practice I have two contracts and my consulting/training is done hourly.
I also get asked if I reveal my hourly rate, no, there's no need. You have all the information you need to just state the flat fee is based on the estimated time, and work involved. So far I've never been asked what my hourly rate was when I give them the flat fee ideology. I do have providers ask what my incentive is since I'm not collecting a percentage and my answer without hesitation is "My reputation" and that usually suffices :)
NJ is not bad really, I used to live and work in NJ but after I moved I stopped doing billing for a little bit but they adopted regulations that require third party billing companies to register their businesses. It is a little tedious and they really don't have any one "qualified in our industry" to "credential" us so they base the registration on your submission of information the need to have to register you.
aksharhealth:
--- Quote from: PMRNC on February 09, 2011, 09:49:26 AM ---
--- Quote ---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!
--- End quote ---
There are actually a few formula's you can use for flat fee billing. The end of the formula always turns out where you get paid for all the time you put in which is the nice part of flat fee billing. The formula I use is based on hourly rate. If you have less experience (meaning your hourly rate may do your flat fee justice) than you can use a 6 or 12 month analysis of receivables, claims etc. For me I start out with what I want to be paid per hour $25/$35 an hour. I estimate the time it will take, hourly rate I want to make, add expenses for that client (postage, clearinghouse, paper, ink, phone, etc) and there you have it. Here is a rough example:
Based on $25 per hour: Estimated time for client per week = 15 15X$25=$375 X 4 weeks = $1500 + Expenses $300 = $1800 per month.
I also use ACT which allows me to time my work by provider so that I can run my own reports to make sure I am accounting for all my time. I simply hit the timer in that clients database, work strictly on their claims and/or calls, etc and whenever I stop, I pause the timer. At the end of the month I run reports and I can see if/where I am losing money. ;D
I also use a sliding scale. If I can enter let's say 5 claims/ 5/patients in an hour, that's $25 per hour, so i would charge the client an additional $25 for every 5 new patients.
If I am doing consulting also with the same practice I have two contracts and my consulting/training is done hourly.
I also get asked if I reveal my hourly rate, no, there's no need. You have all the information you need to just state the flat fee is based on the estimated time, and work involved. So far I've never been asked what my hourly rate was when I give them the flat fee ideology. I do have providers ask what my incentive is since I'm not collecting a percentage and my answer without hesitation is "My reputation" and that usually suffices :)
NJ is not bad really, I used to live and work in NJ but after I moved I stopped doing billing for a little bit but they adopted regulations that require third party billing companies to register their businesses. It is a little tedious and they really don't have any one "qualified in our industry" to "credential" us so they base the registration on your submission of information the need to have to register you.
--- End quote ---
Very good formula. I am confused that before working for client how can we figure out how much time we will spend on the client?
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