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Quote from OnsiteRad
What is contracting costs?
– Negotiating payor contracts so you dont end up getting the 60% medicare they are going to offer you if you just sign whatever they put in front of you.
– Auditing what you DO get paid to make sure you get paid according to your contract and not some lower rate some insurers will drop back to ‘accidentally’.
– Negotiate contracts with entities like workmans comp insurers, prison medical contractors and large employers (occ health) etc.
I didn’t include medmal insurance in the expenses.
Yeah, but that’s part of your overhead. So is health, disability and general commercial liability, state and local business taxes etc. The 7% is going to be what a billing company charges you for claims transmission, lockbox service and maybe 1st level appeals/reconsiderations. Unless you do all the other stuff yourself (which you can certainly do for a 1-man shop), you are going to hire someone to do it. So you either pay someone a salary, or you contract with a practice management company to do this. It’s gonna cost more than 7%.
