What is the percentage fee for home based medical billing service?

by Tina Margiano
(Mission Viejo, CA)

I am currently working at a physician office for 2 years and just got another offer to do the claims at home from another small practice.

What is the percentage fee for home-based medical billing service? I live at Southern California by the way.
I thank you and really appreciate your feedback.

Tina,

I depends on the services provided, the specialty, the size of the practice, and the local competition. I typically see anywhere from 6% to above 10%.

The lower percentage would be for just filing claims and not sending out patient statements, claim follow-up, patient reminders, etc. The higher percentage would be for full services for a specialty that's more demanding - or if they have a lot of Medicare or Medicaid claims that don't pay much.

For an average Family practice I would expect between 7% to 8% in our area.

Another factor would be what expenses you may have. If you are using the physicians software, server/computer and their clearinghouse I would expect the percentage to be a little lower.

Before I quote a potential client I try to estimate what my cost would be to serve them. I've been advised that service providers should charge at least 3 times their expenses to make a decent profit and pay their expenses and overhead.

Here's a web page where I discuss in a little more detail.

Thanks and good luck!

Gina

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Your Questions.


Copyright 2016 All-Things-Medical-Billing.com