Starting a Medical Billing Business > Starting Your Own Medical Billing Business
Pricing your billing service
atwmedbilling:
Hello , My state doesn't allow for Fee Splitting . I was thinking of pricing flat rate monthly for the amount of claims that come in . Do you think this would be a good idea ? ( 0-1500 - $1000 monthly ,1500-2000- $1500 monthly) That is just a example . How do you price your billing service in the states that doesn't allow fee splitting ?
Thanks in advance
williamportor:
--- Quote from: atwmedbilling on April 20, 2015, 04:36:22 PM ---Hello , My state doesn't allow for Fee Splitting . I was thinking of pricing flat rate monthly for the amount of claims that come in . Do you think this would be a good idea ? ( 0-1500 - $1000 monthly ,1500-2000- $1500 monthly) That is just a example . How do you price your billing service in the states that doesn't allow fee splitting ?
Thanks in advance
--- End quote ---
Not a bad idea you have there. I prefer to bill my clients a flat rat, but based on a percentage of their average monthly volume. i.e. $10,000 average monthly billing volume x .07 = $700.00/mo. This can be adjusted when the contract is up for renewal.
PMRNC:
--- Quote ---Not a bad idea you have there. I prefer to bill my clients a flat rat, but based on a percentage of their average monthly volume. i.e. $10,000 average monthly billing volume x .07 = $700.00/mo. This can be adjusted when the contract is up for renewal.
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This would not work in NY since the verbiage includes language to say the fee cannot even be BASED on %. I bill my flat fee based on an hourly rate + expenses. Easy and straight forward. I get paid for all work I do. There is a sliding scale to accommodate practice growth.
Rclausing:
--- Quote from: PMRNC on April 29, 2015, 07:05:30 PM ---
--- Quote ---Not a bad idea you have there. I prefer to bill my clients a flat rat, but based on a percentage of their average monthly volume. i.e. $10,000 average monthly billing volume x .07 = $700.00/mo. This can be adjusted when the contract is up for renewal.
--- End quote ---
This would not work in NY since the verbiage includes language to say the fee cannot even be BASED on %. I bill my flat fee based on an hourly rate + expenses. Easy and straight forward. I get paid for all work I do. There is a sliding scale to accommodate practice growth.
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Dang, that would be nice to be able to be on a time clock. On the down side, your clients pay extra for appealed and/or claims delayed for info requests etc. I understand the desire to eliminate the capacity for fraud when getting paid a % based on claims (billing agency upcodes, or bills for services not performed in order to increase their income), but it also eliminates some desire on the billing entity to be efficient. Quite a trade off. I really don't like the idea of getting a % based on what's billed as opposed to what is paid - lacks incentive to squeeze (collect) every dollar billed out for the client. In order to avoid even the slighted hint of any improprieties, I require my client to code their own superbills. It's just one doc and a PA, so not a big deal.
PMRNC:
--- Quote ---Dang, that would be nice to be able to be on a time clock. On the down side, your clients pay extra for appealed and/or claims delayed for info requests etc.
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NOT necessarily. It depends on HOW your flat fee comes to play. MY flat fee is based on time/hourly rate, but my clients don't know the hourly rate. I'm in NY so physicians understand they can't pay me based on a % anyway. So let's say my hourly rate is $60. A practice that takes me 20 hours a week that's 1200.. add expenses and voila. Now let's say my hourly rate is about 10 patients.. so for every 10 new patients that's a sliding scale of $60. Easy.. Aren't most people paid on an hourly rate? Why do billing companies have to be different? I've NEVER been drilled on my flat fee.. if asked I simply state it's based on estimated time and expenses. Any other service business would do the same.
--- Quote --- I understand the desire to eliminate the capacity for fraud when getting paid a % based on claims (billing agency upcodes, or bills for services not performed in order to increase their income), but it also eliminates some desire on the billing entity to be efficient. Quite a trade off. I really don't like the idea of getting a % based on what's billed as opposed to what is paid - lacks incentive to squeeze (collect) every dollar billed out for the client. In order to avoid even the slighted hint of any improprieties, I require my client to code their own superbills. It's just one doc and a PA, so not a big deal.
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I also don't code..but I'm also in a state that prohibits physicians from paying me on a % (Fee splitting). I also believe the old "We don't get paid till you get paid" is so very tired.. and blase.. I understand some billing companies starting out really have no choice until they build a client base and determine their working time..but I just prefer to be paid for all the hard work I put in and I don't have any client that has questioned that.. I think if I did, I'd walk away. :)
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