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Outsource billing or do own for new clinic

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  • pristinehealth
    Starting a new clinic, would you recommend doing billing yourself initially? What are some good companies that do billing and what are some good resources if
    Message 1 of 5 , Jun 1, 2004
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      Starting a new clinic, would you recommend doing billing yourself
      initially? What are some good companies that do billing and what are
      some good resources if it is done in house? Also, what are you guys
      typically charged by billing companies?

      Thanks
      Daniel
    • pristinehealth
      Starting a new clinic, would you recommend doing billing yourself initially? What are some good companies that do billing and what are some good resources if
      Message 2 of 5 , Jun 1, 2004
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        Starting a new clinic, would you recommend doing billing yourself
        initially? What are some good companies that do billing and what are
        some good resources if it is done in house? Also, what are you guys
        typically charged by billing companies?

        Thanks
        Daniel
      • Evelyn Capdevila
        Definitely, do it yourself to keep overhead down. There are some great programs (software) that make billing very easy. Examples are: Medisoft and Medware.
        Message 3 of 5 , Jun 8, 2004
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          Definitely, do it yourself to keep overhead down.  There are some great programs (software) that make billing very easy. Examples are:  Medisoft and Medware.  There are others, gotta look around.  Initial costs are in the thousands but the programs have many dfiferent options that facilitate billing and pt scheduling (they have recall lists, appointment shceduling, etc.).  If you choose to hire a billing company, they charge anywhere from 5-8% of what they collect. 

          pristinehealth <pristinehealth@...> wrote:
          Starting a new clinic, would you recommend doing billing yourself
          initially?  What are some good companies that do billing and what are
          some good resources if it is done in house?  Also, what are you guys
          typically charged by billing companies?

          Thanks
          Daniel




          To Post a message, send it to:   physical_therapists_in_business@...
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          Evelyn Capdevila MPT, CWS


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        • Dan Alloway
          I ll throw out an apposing view. The cost of billing related to the extent of available, (ie free), resources. Assuming that available software packages are
          Message 4 of 5 , Jun 9, 2004
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            I’ll throw out an apposing view.

             

            The cost of billing related to the extent of available, (ie free),  resources.

             

            Assuming that available software packages are used:

            In my experience the variable costs of billing, (supplies, postage, software), average ~ 0.7%.

            If the start up therapist, (or her/his receptionist, or perhaps a spouse),  has enough free time to spend 15-30 minutes billing/collecting each claim …then theoretically the clinic could bill/collect for a cost less than 1% of billings.

             

            Obviously as soon as the clinic needs to pay for the hours spent billing, the cost of billing increases.

            As an example:

            If the person who does the billing/collecting work charges $12.00 per hour.

            And if total touch time for billing/collecting/posting/reconciling/re-submitting/chasing past due is 25 minutes per claim, (I think this is low).

            Assuming you charge $71.00 per claim….your billing/collection personnel cost is 7.0% of billings.

            This, plus your variable costs of (0.7%), identified above, totals a 7.7% cost of billings.  

             

             

            Finally… the quality of the job done needs to be taken into consideration.

            Average write offs seem to run in the 3.0% range.   ß Let’s assume your business is average.

             

            Shop around with billing services and ask what their average write off rates are.

            Ask if they will guarantee that level… or any other level.

            If you find a billing service that has a current run rate of 2.5% write offs… then you’ve found another opportunity.

            Your write off experience of 3.0%  minus 2.5% write offs accomplished by a billing service = a potential increase in profit of 0.5% of billings.

             

            From the scenario above, (you paid a part timer $12.00 per hour to bill/collect),  where billings cost your clinic 7.7%, add the 3.0% of incremental write off to this number.

            With this perspective, your in house billing/collections is really costing you 10.7% of billings.

             

            Whereas a billing service that charges 6.5%, (but averages 2.5% write offs), will cost you, net, 9.0% of billings.

             

            IF:

            -          You pay someone $12.00/hour to bill/collect.

            -          Each claim takes 25 minutes to bill/collect.

            -          Your write offs are 3.0%

            -          You find a billing service that charges 6.5% and averages 2.5% write offs….

             

            Wouldn’t you be better off using this billing service?

            -          Aren’t your real costs 9.0% with the billing service and 10.7% in house?

            -          Wouldn’t your profit increase by 1.7% of billings by using the service?

             

            Thx for listening,

             

            Dan

             

             

            -----Original Message-----
            From: Evelyn Capdevila [mailto:evelynheals@...]
            Sent
            :
            Tuesday, June 08, 2004 8:42 PM
            To: physical_therapists_in_business@yahoogroups.com
            Subject: Re: [physical_therapists_in_business] Outsource billing or do own for new clinic

             

            Definitely, do it yourself to keep overhead down.  There are some great programs (software) that make billing very easy. Examples are:  Medisoft and Medware.  There are others, gotta look around.  Initial costs are in the thousands but the programs have many dfiferent options that facilitate billing and pt scheduling (they have recall lists, appointment shceduling, etc.).  If you choose to hire a billing company, they charge anywhere from 5-8% of what they collect. 

            pristinehealth <
            pristinehealth@...> wrote:

            Starting a new clinic, would you recommend doing billing yourself
            initially?  What are some good companies that do billing and what are
            some good resources if it is done in house?  Also, what are you guys
            typically charged by billing companies?

            Thanks
            Daniel




            To Post a message, send it to:   physical_therapists_in_business@...
            To Unsubscribe, send a blank message to: physical_therapists_in_business-unsubscribe@...




            Evelyn Capdevila MPT, CWS


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          • Todd Bean
            I disagree that doing it inhouse saves overhead. By outsourcing you save on employee benefits such as sick pay, vacation and missed days. Not to mention health
            Message 5 of 5 , Jun 15, 2004
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              I disagree that doing it inhouse saves overhead. By outsourcing you save on employee benefits such as sick pay, vacation and missed days. Not to mention health plans and other benefits paid by the clinic. By outsourcing to a company such as ours, you have a fully staffed billing department that is highly knowledgeable about correct coding and reimbursement. There is no retraining of staff when changes occur in coding and reimbursement. Our committment to the clinic is higher than employees because we do not get paid until the clinic does. The clinic must do well in order for us to do well.
               
              Todd
              ----- Original Message -----
              Sent: Tuesday, June 08, 2004 5:42 PM
              Subject: Re: [physical_therapists_in_business] Outsource billing or do own for new clinic

              Definitely, do it yourself to keep overhead down.  There are some great programs (software) that make billing very easy. Examples are:  Medisoft and Medware.  There are others, gotta look around.  Initial costs are in the thousands but the programs have many dfiferent options that facilitate billing and pt scheduling (they have recall lists, appointment shceduling, etc.).  If you choose to hire a billing company, they charge anywhere from 5-8% of what they collect. 

              pristinehealth <pristinehealth@...> wrote:
              Starting a new clinic, would you recommend doing billing yourself
              initially?  What are some good companies that do billing and what are
              some good resources if it is done in house?  Also, what are you guys
              typically charged by billing companies?

              Thanks
              Daniel




              To Post a message, send it to:   physical_therapists_in_business@...
              To Unsubscribe, send a blank message to: physical_therapists_in_business-unsubscribe@...





              Evelyn Capdevila MPT, CWS


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              Friends. Fun. Try the all-new Yahoo! Messenger

              To Post a message, send it to:   physical_therapists_in_business@...
              To Unsubscribe, send a blank message to: physical_therapists_in_business-unsubscribe@...



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