Medical Billing Forum
Starting a Medical Billing Business => Starting Your Own Medical Billing Business => : williamportor October 27, 2019, 11:53:00 AM
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About 13 months ago a provider I do billing for switched to a new practice management system they knew little about. Rather than properly completing the training and instruction for this system, they simply bought it, had it installed, and decided to learn about it on the fly while they serviced their patients. Not surprisingly this has produced a pretty big mess. 11 months ago their former biller left, unwilling to learn the new system and I took over. Now in addition to doing the usual billing, posting and follow up of unpaid claims, I must spend an extra 3-5 hours every week filling in and correcting data entry errors that should have been done by the front office staff, and well as calls to software customer service (complete w/ long hold times) asking why their system is not automatically billing some insurances in the system. Since I'm doing my contracted billing work in addition to some front office work, I'm going to raise my rates next month at the 1 year mark, but...how to do this? The Provider is happy with my work, so should I:
* Present him with a new service agreement and verbally explain why my rates have gone up?
* Send the new service agreement along with a letter of explanation?
* Both?
Any ideas would be helpful. :)
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I would recommend explaining in person. A letter can be misinterpreted, and can't answer questions.
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I don't believe you need to explain, most service businesses in general review contracts at least every year. When gas prices go up, the oil companies certainly don't call us to explain, utility services, etc. A simple letter and new contract works best. An explanation almost certainly leads to the client thinking it's negotiable or combatable. Since I bill flat fee based on time/expenses, once a year I look at reports I run in my CMS and it tells me the story, if I need to raise my rate I do, if I'm spending too much time on one account but my rate is fair, I just cut back on time. I then will send a letter to the clients I need to adjust rates for and so far, none have even questioned it. In all my original contracts there is a clause that I can raise / adjust rates with 30 days notice and that the contract is amended so the client doesn't need to sign again as they signed knowing the rate would be adjusted and I send them the amended contract.
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Linda has some good points. We actually don't talk to our clients prior either, but they are accustomed to us reviewing the fees and adjusting when necessary. My only thought with Williamportor's situation is that he is ending up doing work that wasn't originally discussed (at least that's what I gather) so I was thinking it should be a conversation.
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Thank You for the input folks. I was leaning in that direction myself, but it's nice to have some conformation. :)