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

Starting a new medical billing and collections company

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midwifebiller:
Our set-up fee is $200. My competitions' (two other national midwife billing services) set-up fee are $400 and $700. I also give discounts to providers moving from my competition to our service.

Flat fees for our midwives have been fairly easy to figure out, since they have a course of care that ends 6 weeks after baby is born. We charge $230 per full course of care for both mom and baby, and pro-rate it if they transfer out of care before baby is born.

For our new non-midwife clients, I ask them how many claims they send per month and then figure about $18 per hour for billing, posting payments and working AR (I have figured out how long it takes me and my most efficient colleague to bill x number of lines and post x number of payments). If there is someone to talk to at the office about billing, I'll ask her how long it takes her to bill, post payments and work AR. The first time I figured this, I came in a little low, so we are breaking even with this client, but not making a profit.  The second time, I came in just right.  I added a clause to our Agreement that allows for readjusting of the billing fee three months after they sign on with us, so I can go higher or lower as needed.

I hope this helps.

ruthie72:
That really helped alot. thanks so much..can you share one more thing with me? What technically counts as your set up ? I am looking to start with small practices, and chiropractors..so i do not get overwhelmed right away.. since i am new at this....i appreciate your help. Have a great day

midwifebiller:
Set-up for us includes:
*Creating a provider account in our billing program. We use HealthPac, which allows us to create our own provider accounts. (I have used other billing programs where I had to wait for the support team to set up a new provider account and then they charged me.) This takes me about 15 minutes.
*All forms--patient registration form, verification of benefits form, superbill and encounter form. This takes me about 10 minutes.
*Set-up for electronic billing. This is just a form I fill out and send to the clearinghouse. Two minutes.
*NPI registration (for new providers) with insurance companies.  This may take 30 minutes to fill out and fax forms to Aetna, UHC, Cigna and BCBS.
*30-minute phone conversation to teach them how to use the forms, how to work with a billing service and answer any questions.

We have started offering credentialing services also, but that is not included in the set-up fee.

I hope this information is helpful.

midwifebiller:
Oops, forgot a few other things we do behind the scenes:
*Create a new account in QuickBooks.
*Add her to our email contact list and create an email folder for her.
*Add her to our Provider List (excel spreadsheet) for everyone's reference (there are six of us here).

PMRNC:
I do take into all that was mentioned by Kelli in my setup fee, but I do something a little more creative because I've been USED before by provider's who want a quick clean up and get away without paying.. My setup fee actually ranges from $300 - $3000.  Big range..but here's why. I don't just look at my setup fee as a price for setting up.. it's also my "security deposit" and helps me weed out the "users"  My setup fee depends on the size of practice, the "CONDITION" (big one for me) of the practice, volume, services, costs, etc.  My setup fee also serves as a marketing tool as well. If I have a client on the hook I will reel them in by letting them have a discount off the setup (NEVER WAIVING IT... EVER!) if they sign the contract within 2 business days.  Kill 3 birds, one stone :)

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