Billing > Billing

Pricing Strategy

<< < (6/6)

PMRNC:
 


--- Quote ---Now can I include everything the doctors collects, except self pay patients. Just confirming, I don't want to be unfair. Thanks Michelle.
--- End quote ---

This depends on the contract. The consensus is, is that if you plan to do a % of collections it's ALL practice collections including patient payments.. why wouldn't you charge? You touch it, you report it, you bill for it.  But again.. HOW this plays out is up to you AND must be spelled out EXACTLY in your contract (another reason I dislike % billing, too many grey areas and loopholes).


--- Quote ---And one more thing, do we charge the same % for capitation payments?? because we don't have to follow up on them.
--- End quote ---

Again, up to you. With capitation (these will be phasing out over the years as it already has) you are still posting payments, reporting, etc, you should be paid for all services. Again this is why I like the flat fee model, it's based on your time/worth/experience and you get paid for EVERY minute you work. No one can answer these questions w/out knowing what your putting in your contract, as that's extremely important. When you bill on a % you MUST spell everything out so there is NO surprises later. Billing on a flat fee you merely only have to explain the monthly fee and how it's derived from time, work, etc.
Most billers I know are still doing % merely because "everyone else is doing it" or they think that's only option provider wants. I've never had a problem talking a provider out of % based billing once I explain the logistics to him. His accountant, his other service providers don't charge % so it's not too hard to explain to him/her on a more reasonable and less scrutinized method of billing.

SnyderKristine:
Linda, I wish so badly that I could charge this client a flat fee model. But he won't agree. And as this might be my first client, so I will have to take this one up for what ever I get to start.

I don't want you to share the contract, but can anyone share the clause in the contract that makes it clear we will charge say 6% of ALL the revenue coming in the provider's account. Thanks

PMRNC:
Here is what I would tell a provider if he wanted to break out collections in office from my % when I did bill %.  When you have an office that is going to track ONE set of collections and the billing company another, you now have two sets of books. A BIG FAT NO NO.   On the other hand if they let you track those payments they then have ONE nice neat compliant set of books and reports that are true. If the feds come a knocking it won't look good for the billing office to have ONE set and the physicians office another set.  And lf they decide to let you post them, who sends out the statements? That leads back to what Merry says, you track it, you touch it you get paid for it.   Let's suppose THEY want to track them in the same system, then you have more hands in the cookie jar which also makes a mess. That's why it's best to explain this to the provider so that you are getting paid your percentage on ALL revenue. When you are doing your contract you will spell out all of your services and it will be stated that you will receive $XX for all practice revenues brought it. If you are sending a statement to a patient for $200 and later they send the office $200 you've thrown away money because you billled it, your tracking it! I do understand some billing companies will not charge % on what the office collects but again I refer back to what I said that you now have two sets of books/reports and the practice loses out on a true practice picture of their accounts not to mention the mess it would be if you were to go through an audit. 

RichardP:
We charge a percentage.  But we have two tiers.  Regular percent for non-cash.  Half of regular percent for cash.  We process all payments, cash and otherwise - so that a patient's account shows all charges, payments, and write-offs.  But were we can identify a payment as cash, and we did not have to bill for it or otherwise contact the patient, we assign that payment to a Cash Financial Class.  At the end of the month, we can run a report that shows totals for Insurance Payments, Patient Payments in response to Statements sent, and cash payments made in the office.

If we handle it, we get paid for it.  But some handling is less than others, and so we charge a lower fee for that.

Re. double bookkeeping - some clients sell things from their office, like vitamins, etc.  Those sales have nothing to do with the procedures performed on the patient, and so we have no need or desire to track those in-office payments.  The office runs their own books on those misc. sales and payments.

Navigation

[0] Message Index

[*] Previous page