Billing > Billing
Pricing Strategy
PMRNC:
--- Quote ---Actually plain and blunt I offered him 7% of his revenue for all the services right from Appointment reminder to Patient Collections. Is that feasible?
--- End quote ---
I don't like % based billing for many reasons, someone else might be able to weigh in here but I don't there really is a way for anyone to tell you it's a good price model for THIS client. When I am meeting with a potential client I do a full practice analysis so that I can come up with the best pricing model for him. I don't use % based, my fees are based on a flat monthly rate and calculated by my TIME so that I get paid for everything. If you get ONE client with heavy WC or PI, you could really take a hit financially. Likewise a problem client that required a lot of time could cost you money. I go in and analyze everything so that I can give them a pricing structure BEST for them and me.
SnyderKristine:
I personally don't prefer the % based pricing for many reasons. But the client himself went ahead and asked me how many% I will charge him, so I gave him that 7%.
Now considering this same example.
If I and one other resource would work on this account, and I guess would have to spend 4-5 hours everyday to keep things in pace,
What hourly rates should we charge and What should be the monthly flat fee?
I am just trying to get a approx. figure, I will add my own expenses and conditions to that?
But what I am trying to get is a minimum or maximum amount. So that I don't charge him less which would create a problem for me, and at the same time I don't want to loose the client by quoting some extra terrestrial amount..
Will these details help??
PMRNC:
If you do a search here within the forum you will come across a few formula's. I can't tell you about what you should charge as hourly rate because I don't have the proper demographics to do so. I have a formula somewhere on this forum that shows you how to do a monthly flat fee with sliding scale and at same time have provider not even know what your rate is based on in regards to hourly rate. Even if you charged $40 an hour, you can still save the provider a lot of money, but the question is what is your time / experience worth in regards to hourly rate? How long does it take you to do the everyday functions necessary? Volume ? etc. Unfortunately pricing your services really is a matter of personal preference to you and your business and will vary greatly depending on your experience.
maxamillion125:
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.
Michele:
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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