In business, you can price yourself out of business in either direction. My sister-in-law was selling golden retrievers for $100 because she thought that was a fair amount. She was getting no takers. Come to find out, because her price was so low, people assumed something was wrong with the puppies. She tripled her price and sold the puppies immediately.
You have been in business a long time, you have a client base, this is luxury a lot of us don't have.A new company has to offer something different. If we offer the same as everybody else, we are certain to fail. If we offer the same things at the same price we have nothing to offer, except our good looks, and you know how far that gets you.
I beg to differ with you that doctors are not price sensitive; I have spent my lifetime dealing with physicians, they are the cheapest people, and now more than ever.
As you know medicare is cutting their pay by 27% starting January 1, under Obamacare. Other insurances usually follow medicare, the doctors would be scrambling to save a nickel anywhere they can.
One does not have to sell on a percentage basis; one can sell for $2.99 per claim or $3.99 per claim while the going rate is $5 to $8 per claim. The percentage is the most common, and what the doctor would be already paying
My question remains the same, can you make money by discounting the services whether by percentage or per claim basis? If I cannot I would not enter the field, I have nothing to offer; and so goes for every newcomer.
I am the organizer, I plan to subcontract almost all of the work. At the end of the day if I can get 20% net margin, I am happy. I am still doing my research and that is why I ask questions; if that is not feasible I will do something else.
QuoteHere is medical billing service that charges 4%; they say so on their website:http://www.ebiometronics.com/I talked to them, the owner is a doctor ( Nephrologist); they claim to have several hundred clients. They appear to be profitable. Actually I asked him. Nephrology is a high paying specialty, for him to spend most of his time in this business, he must be doing well.They use the office ally system. Is that better than Kareo? but that is another question.
Here is medical billing service that charges 4%; they say so on their website:http://www.ebiometronics.com/
How do they get their business? Google Adwords. You can get a client for about $200.