RENEGOTIATE and collect for all consulting and services

Barbi Elmore, Director of Product Development | PracticeAdmin
Barbi Elmore, Director of Product Development, PracticeAdmin, LLC

Part 3 of a Three Part Series for Owners of Medical Billing Companies on how to increase their revenue.

It’s surprising how billing services have such varied pricing plans. They typically collect from three to eight percent, without much differentiation in their services. Even more surprising are the billing services that itemize for everything on top of their percentage fee, and some that roll all services into their percentage.

Knowing that some of your colleagues charge for every service they provide, the key  to charging a fair and appropriate amount is understanding your value and what you are providing for your clients. It’s important to detail the scope of work you will be providing. Make it very clear in the beginning what services that you will be providing and itemize all services provided.

How much money are you losing by not passing on your costs? Document the time you spend on the phone putting out fires. You may find yourself taking on the role as an office manager when that is not what your contract states. If you’re paying vendors for ancillary services like eligibility verifications, statement printing, and interfaces, you should be itemizing those charges on your client’s invoice. Charge for IT consulting and services separately including evaluating software, staffing and recruiting, as well as ICD-10 consulting and training.

If you are concerned about push back from your clients, start itemizing with zero dollar lines to inform your providers of everything you do for them. After a few months this could open up a conversation about renegotiation. As you acquire new clients, implement this itemizing method from the beginning.

Healthcare is changing and what worked just two to three years ago no longer works. Because your business changes constantly, your processes need to be adjusted and improved as well. Start small by implementing one idea that will make the biggest impact on your revenue.

This article is based on a webinar “3 Simple Ways to Increase Your Revenue” created by PracticeAdmin. You can follow Barbi on Twitter at @BarbiElmore.

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