Practice With Ease

1. Practice With Ease Published By:https://practicewithease.com/

2. As the medical practice business becomes more competitive, many practices turn to a third-party medical billing service for cost-effective solutions to keep maximum profitability. There is an array of factors that should be taken into consideration when evaluating any medical billing service agreement-the pricing of services is primary among them. This article compares the two most common pricing approaches offered by medical billing services-percentage-based agreements and flat fee per claim-and identifies some of the important points to remember when selecting a provider for medical billing. Do you want to learn more? Visit out of network billing. Percentage Based Agreements: The percentage based agreement is probably the most common approach to pricing by medical billing services. In this type of agreement, the practicum fees for the medical billing service are based on a percentage, usually in one form or another of the following: percentage of collections, percentage of gross claims submitted by the billing service, percentage of total collections for the general practice.

3. With the first type above, percentage of collections, the medical billing firm charges the practice only on net received for those claims in which it has assisted directly in collections (usually excluding money collected at the office, such as co-paid, deductibles, etc.). This is the purest example of how a percentage-based agreement will tie the success of the medical billing service to the practice while safely limiting it to something that they have some measurable ability to influence. This type of percentage-based agreement benefits the practice through its quality of "self-police"-the medical billing service only makes money when the practice is making money.

4. In our second type, percentage of gross claims submitted by the billing service, a percentage of the total amount submitted to insurance companies and other payers is charged for the practice. That can be inconvenient for two purposes. First, an insurance company's rate billed is not always the same as the rate negotiated which will be paid. Thus an apparently competitive percentage of one medical billing service may differ dramatically from another medical billing service depending on where the percentage is applied. Second, some of the above-mentioned incentive for follow-up on claims is removed as there is no attachment to the results of submissions from the medical billing services. Have a look at plastic surgeon billing to get more info on this.

5. The billing service charges for the total net received by the practice, with a percentage of the total collections for the general practice. It includes co-payments, deductibles, and any other money that the office collects, not just the service. Most commonly, this arrangement is found with full-scale practice management companies that not only handle medical billing but may also administer staffing, scheduling, marketing, fee scheduling, etc. In this system, the medical billing provider may be motivated by an obligation to follow up on payer reports, but it receives some support from its profits through other payment channels going into effect.

6. Summary: Practicewitheaselaunched in 2006 as a practice management software company. Today, Practicewithease is a medical billing company with a specialization in follow-up. Visit this site to learn more: https://practicewithease.com/