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

Subcontractor

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jyoung65:
I will be needing subcontractors soon, I have no clue on how to pay them for their services. Would I pay a percentage or flat rate?

I have been searching the web, for a sample of a medical billing subcontractor agreement. Had no success can anyone direct me to a website, to review a sample of a  Medical Biller subcontractor agreement?

Thanks;)

Michele:
Do you mean to do billing for you?  But not to pay them an hourly rate but to pay them some sort of flat fee or % based on work?

Michele

jyoung65:
Yes, I need to know how to pay a Medical Biller subcontractor.

PMRNC:
i would think you can reimburse them however you want really. I would NOT use sample contracts.. I would have them drawn up and include a good non-compete of some sort as a deterrent. Non-competes don't always hold up, but a good attorney can get it as good as you need it for your state.

midwifebiller:
I only hire independent contractors (not employees) and it has worked very well for me.  A few things to remember:

As a contractor, they must send you an invoice. Some contractors will already have their fees (per hour, per job, or otherwise), some will not and you will need to negotiate a fee.

Also, as a contractor, they must be allowed to work for other companies.  They may choose to only work for you, but if you were ever audited, this is one of the things they look for.  A non-compete clause is a red flag for a tax auditor and not enforceable in many states.

Your Agreement should clearly state 1) what their responsibilities are; 2) what your responsibilities are; 3) the fact that they are an independent contractor and therefore responsible for their own taxes, business licenses and equipment; 4) payment rates and time schedules; 5) contract terms, including grounds for termination.  An accountant can help you with the differences between an employee and a contractor (also good info on irs.gov) and, as stated above, an attorney can help with the legal-ese of a solid contract.

We had one contractor who we had to let go, then she came back demanding unemployment benefits.  Our Agreement clearly stated she was not an employee, but a contractor and it saved our backside. 

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