Illustrations of how various costs may be broken down include the following:

The 5% collection rate for invoices and underpayments

If we charge $1,500 for a service and follow all of the appropriate billing procedures to submit the claim to the insurance company for payment, but the insurance company only pays $300.

Further to the preparation for the encounter/claim at this stage, we must:

Before proceeding with posting payments and moving on to the next applicable step, it is necessary to examine the claim, identify and verify the underpayment, consider the benefits, evaluate the explanation of benefits, deductible amounts, and out-of-pocket expenses, calculate the correct expected reimbursement, call the insurance company for reprocessing and even appeal the claim for underpayment.

Just taking these additional measures would need us to divvy up more time and manpower, right?

Thus, if the additional job takes three hours and the employee is paid $20 an hour, that comes out to around $30 an hour when you include in things like taxes, software licensing, information technology, etc.

The price tag for these additional measures is around $90 ($30 x 3).

If SMB’s collection rate was 5%, the $300 shortfall would be $15.

If we were to collect the additional $1,200 at 5%, MMB would get $60.

Due to the additional work involved in collecting, SMB would incur a loss of $30 in this case.

The loss is significant even at 5%, much alone lower amounts.

Hence, it would be unreasonable to expect or demand that we collect as much as possible while only paying a small amount in return. This idea applies to the negotiation of claims, litigation and arbitration, past due claims, hard collection from patients, intensive follow-up, etc.

Just as our clients have a right to be compensated for the care they have given their patients, so do we for the work we do on their behalf.

After all, nobody likes doing labor without being paid.

We’ve all heard the old adage, “You get what you pay for.”

Medical billing businesses are increasingly using ingenious sales and marketing methods, generally based in the United States, to attract new customers, while outsourcing the bulk of the work to countries with lower labor costs.

In today’s market, once a new customer is obtained, the billing business hands over all of the associated work to an inexperienced and ill-equipped resource, usually by outsourcing to a company that pools its resources with those of other billing firms.

Even if this untrained shared resource makes an honest attempt, there will be many mistakes and details missed. In most cases, the medical practice will either be oblivious to the billing service’s flaws or willing to tolerate them because of the low cost of the service.

When a billing service hires a third party to handle some of their workload, the aforementioned is a common occurrence.

Our cutting-edge technological solutions will help your medical facility run more smoothly and with lower costs.

By eliminating manual processes and switching to an electronic document management system, we may expedite the medical practice’s revenue cycle.

Our billing system is one of the most advanced and effective available.

We save time no longer having to physically access and rummage through filing drawers and their contents. Rather, we focus on revenue generation for your practice.

With our web portal, HIPAA compliance is simplified by allowing customers to submit files for invoicing and view required papers online.