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

Service Pricing

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mbloom:
I am having such a dilemma with pricing. The client does not want to pay a percentage of collections but an hourly rate, to me, would be too little unless I charge a large hourly rate.

The situation is its a hospice center with about 11 people on census. The billing itself may take me about 3 hrs a week and the follow up work about another 3 hours a week. I offered other office work as well such as management and accounts payable. SO, this may tots about 10 hrs a week of actual work but my billing efforts will bring her in anywhere from 12k to 30k weekly.

What should I do? Have any of you every charged hourly before and if so in what range. Is $30/hr too much?

HELP!

PMRNC:
Without knowing your experience or area it's hard to say if $30 is too much.  I can tell you that I would never go back to % based billing and that it's MUCH more practical and efficient to do a flat monthly fee.  Here's a secret though.. YOU do NOT have to disclose that hourly fee.   You decide what you need to make an hour, estimate how many hours you need, add your costs and voila.  Create a sliding scale to accommodate the practice growth along with your increase work load. For example, you might know you can comfortable do 5 patient's an hour so if your monthly fee is based on an hourly rate of $30 you would add $30 upon the addition of every new 5 patients.  Again, you do NOT have to disclose your hourly rate.  You figure out the monthly rate, present it and if asked you tell them the fee is all inclusive of your time and costs. That's it!    BEST PART is you get paid for all of your work!!   Now where it gets a little tricky is if you don't have enough experience to justify a higher rate so again, it really depends on the type of provider, how much time is needed, any special circumstances and the billers experience.   This is strictly billing. I charge consulting rates for all other services such as credentialing, P&P review, compliance issues, training, etc.

QueenAlicia:
I agree with Linda that you do not need to let the provider know how much you charge an hr.  Flat fee is much better and the provider is trying to cheat you of money. So what if it takes you three hours a week it still accounts for your time which may include getting on a phone and checking on insurance.
Remember your business takes many of the costs away from the providers. It's your right to charge what you want and remember don't let someone back you down. 

DMK:
Billing by percentage would kill me!  Some of my lowest paying insurance companies take the most time to get a claim paid!

QueenAlicia:
If I billed by % it would kill me too.  Sometime my providers only receive $25 for their visits. 

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