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

Aged Claims Percentage

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jyoung65:
I am sick right about now! I have a client I charged 40% for her aged claims. She had claims over 120 days old. I asked for advise from the forum and I was told to charge her 50, 40 and 35%.

So I charged her 40%, my competitors are charging 41/2, 5 and 10% for aged claims.  I need and want to be competitive, but their rates are very low, aged claims are very time consuming. I need some advise please.

Thanks

rdmoore2003:
what does your contract say?

jyoung65:
I am not referring to my current contract. This is for future clients pricing.

Alice Scott:
Don't worry about your competition.  You want to be light years ahead of the competition by offering better service than they are.  When you are charging 40% on these older claims they are taking you much more work and you are getting paid for your time.  Someone who is charging only 5% is not getting paid for their time or they are not spending enough time to do a good job.  How can you compare yourself to them.  It is sometimes difficult in the beginning of this business to justify what you charge compared to others but you shouldn't care what others charge.  Are they doing the same job you are doing?  You are getting 40% for the ones you are working on and getting paid for your time.  You have a chance of surviving.  How long can someone suvive if they aren't getting paid enough for their time or are doing a poor job of it?   

Michele:
Another way is to charge by the time, or a flat fee.  It always sounds high when you say 40% or even 35%.  Truth is collection agencies get about that % too and this is truly collection work.

I don't know how anyone can do aged claims for 4.5% or 5%.  But 4.5% of nothing is nothing and that means the 95.5% that the provider kept is $0 too.  They may not want to pay you 40%, but 60% of something is better than 95.5% of nothing.

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