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Industry Average Profit Margin / Labor %
rmk123:
What is the average gross profit margin for the industry to benchmark against - physician billing, midwest? 25 - 30%?
What is the average labor % vs. total expense to benchmark against? Realize this answer depends on a lot of factors!!!
RichardP:
--- Quote from: rmk123 on November 24, 2013, 09:34:54 PM ---... Realize this answer depends on a lot of factors!!!
--- End quote ---
Correct. Would you care to state a few factors you are interested in? That way, any responses can be more specific.
rmk123:
Physician billing as stated below with each client team covering full revenue cycle actions from eligibility through account resolution with patients. Some of the clients are more labor intense because of their specialty and others are less so. Primary specialties are family medicine and peds.
RichardP:
Ah - you want profit benchmarks and labor cost benchmarks for billing companies. I'm not aware of anyone that collects those statistics. You might contact the billing departments for university medical centers in the midwest to see if they will share those statistics.
I've seen published comments that one person should be able to handle two doctors. That squares with our experience, give or take a busy period or slack period. We have temporary people that we call in for those busy times outside of the norm.
I've seen billing fees range between 5 - 8% of all monies collected - which again squares with our experience. If you are careful to control your expenses, there is a living to be made somewhere in that range.
rmk123:
Thanks for your suggestion on contacting University Medical Centers.
Yes, those are the only stats I've seen to date as well!
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