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Quote from fw
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%.
OK. Thanks.
The law office that we work with and our billing company charge us per hour for negotiations or any extra work. It does not cost us more than 2% per year on average. If it is the year that we are renewing our major hospital contract it is a lot more but we don’t negotiate hospital contract every year.
