General Category > General Questions
Percent Billing and OIG
RichardP:
Linda - First, I am not pushing percentage billing over flat fee. I was making a math point.
Second, you have stated elsewhere that you charge a flat fee for bringing in the client's monies (billing), using a sliding scale sometimes, based on volume of work; you charge other fees for other work that is not directly a part of collecting what is owed to your client (consulting). The "math" I talked about in my previous post applied only to the billing part of your fees. I understand that, in addition to the billing monies, you earn other monies for consulting, etc. We charge a percentage only on billing activity. We charge extra fees (flat rate) for consulting stuff that is not directly related to billing.
PMRNC:
--- Quote ---Second, you have stated elsewhere that you charge a flat fee for bringing in the client's monies (billing), using a sliding scale sometimes, based on volume of work; you charge other fees for other work that is not directly a part of collecting what is owed to your client (consulting). The "math" I talked about in my previous post applied only to the billing part of your fees. I understand that, in addition to the billing monies, you earn other monies for consulting, etc. We charge a percentage only on billing activity. We charge extra fees (flat rate) for consulting stuff that is not directly related to billing.
--- End quote ---
NO Richard, I have NEVER stated I charge a flat fee for bringin in the clients monies. I charge a flat fee based on MY hourly rate, expenses and sliding fee to accommodate provider growth. NOTHING to do with revenue. Revenue is not taken into account at all. I did not state "volume" of work. I stated the WORK I do, my expenses/client expenses.
--- Quote ---you charge other fees for other work that is not directly a part of collecting what is owed to your client (consulting).
--- End quote ---
Different fee all together, different contract as well. For clients I bill and consult for we have two different contracts and two methods of payment all together.
Unlike those companies that charge a % of revenue, I get paid for every minute, every hour and every task I work. My contracts for billing and consulting are separate as they should be.
RichardP:
Linda said: My contracts for billing and consulting are separate as they should be.
That was the distinction I was making. If I was not clear on that, then my bad. The math I discussed above would have been relevant only to your billing contract, as it is for ours. The consulting contract is a totally separate issue and has nothing to do with percentages.
PMRNC:
--- Quote ---That was the distinction I was making. If I was not clear on that, then my bad. The math I discussed above would have been relevant only to your billing contract, as it is for ours. The consulting contract is a totally separate issue and has nothing to do with percentages.
--- End quote ---
I understand that, but my billing services are NOT constructed using revenue or percent of revenue and ONLY based on time, expenses/costs. There is NO connection to a percentage of revenue in any way.
RichardP:
There is NO connection to a percentage of revenue in any way.
Seriously?? At this point, this is just for fun - so please don't think I'm picking on you. You will find that there is indeed a connection to a percentage of revenue if you carry out the experiment I suggested in this quote from above. But I think you know this already.
--- Quote from: RichardP on March 04, 2013, 11:07:40 PM ---... unless a client's income varies significantly, a consistant flat fee will end up being some percentage of the income that the biller brings in for the client. This is a math statement, not a political one. If your clients have a relatively stable practice, you could add up the income you collected for them over the past 36 months and add up the fee you charged for collecting that income over the past 36 months [don't include consulting income here]. Divide the total fee income [for billing only] by the total monies collected [for the doctor, from billing only] and you will get a percentage. If your client's practice stays relatively stable for the next 36 months, you would "earn" roughly the same amount of money if you charged him that percent rather than your fee [for billing only]. This is a math issue, not a political one.
--- End quote ---
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