Billing > Billing
Pricing Strategy
shanbull:
Definitely no percentage billing for claims as old as 2011, there's too much chance you'll spend time on claims that will never get paid. If they want you to work with the old claims anyway, flat fee is crucial. You could even do a flat fee for claims over a year old and percentage for claims under a year old. I just would be wary of getting stuck with a pile of claims that are deadweight with nothing to show for it in the end.
Look at what you need to be making to provide for yourself, at minimum, per year. Include your business and advertising expenses. Break it down into a monthly wage. Add foreseeable monthly expenses for this client. Add a small cushion for emergency expenses. That's your minimum monthly flat fee, if you're expected to work full time on this alone (if not, adjust what portion of your monthly wage would need to be paid by this client/factor in wages for any additional employees you would need to hire for this). Once you are more experienced, give yourself a raise in the first category and recalculate.
SnyderKristine:
--- Quote from: maxamillion125 on March 05, 2014, 01:52:19 AM ---We do the billing for a 1.5 Million dollar provider and charge 7%. We do anywhere from 30-50 claims each day. You have to figure in all the time spent calculating and depositing every Insurance and patient payment, denied claims management, patient calls, statements, entering patient demographics and refunds on top of all the obvious services you'll be doing. Our practice management software costs us $250 per provider so thats another $750 per month on this particular account. 1.5-2 full-time employees for an account this size is about right.
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Thanks for providing all this info. It gives me a better picture of what we will have to do... Just one more question about this scenario:
"How do you calculate the amount collected for every month, so that you bill 7% of that? Where do you get that data from?"
Newbie...Plz don't mind ::) ::) ::) ::)
SnyderKristine:
--- Quote from: Michele on March 05, 2014, 12:58:33 PM ---We have billed for an account similar to this, internal medicine, we did all but verify benefits and appt reminders. And NO CODING. It took 1 employee full time and another employee that could handle some other stuff as well. I agree with Linda, no percentage billing. I prefer a flat monthly fee. I do not like quoting a provider an hourly fee. They do not take all of our expenses into consideration. When you quote a doctor an hourly rate they think they are paying an employee that amount per hour, not a business.
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That's what I am planning to do. I will work on this account myself for full time and Will hire a part time employee. Plz don't mind me asking this, but how much flat fee did you charge this particular provider. It will make things more clear for me. A straight forward example..
Thanks in Advance Michelle
SnyderKristine:
--- Quote from: shanbull on March 05, 2014, 04:19:04 PM ---Definitely no percentage billing for claims as old as 2011, there's too much chance you'll spend time on claims that will never get paid. If they want you to work with the old claims anyway, flat fee is crucial. You could even do a flat fee for claims over a year old and percentage for claims under a year old. I just would be wary of getting stuck with a pile of claims that are deadweight with nothing to show for it in the end.
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Yeah you are right. Percentage model for old pending claims would only put me in problem.. Waste of time and energy...
--- Quote from: shanbull on March 05, 2014, 04:19:04 PM ---Look at what you need to be making to provide for yourself, at minimum, per year. Include your business and advertising expenses. Break it down into a monthly wage. Add foreseeable monthly expenses for this client. Add a small cushion for emergency expenses. That's your minimum monthly flat fee, if you're expected to work full time on this alone (if not, adjust what portion of your monthly wage would need to be paid by this client/factor in wages for any additional employees you would need to hire for this). Once you are more experienced, give yourself a raise in the first category and recalculate.
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Marketing expenses +
Practice management charge for the client+
Patient statements charge+
Online payment by patient (credit card /debit card) +
Wages of employees working on this account +
Stationary charges +
Phone bill +
Misc (Profit)
Would this formula work ???
RichardP:
--- Quote from: SnyderKristine on March 05, 2014, 07:11:28 PM ---"How do you calculate the amount collected for every month, so that you bill 7% of that? Where do you get that data from?"
--- End quote ---
When payors are billed (Insurance and patients), they will eventually pay ... something. So - ask yourself this question "from Day First of the month to Day Last of the month, how much money did the doctor receive?" Add up all this money and multiply by .07. That is your fee. You can calculate this figure from the doctor's deposit slips with dates that fall within the target month. But the more usual way is to print a report from your billing software that totals all payments posted to the software during the target month.
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