If you are going to try and create your own medical billing
company, you should have a medical billing contract. You can either have a basic contract, or have
an attorney draft up a contract.
In the contract there are some things to consider
Name of the billing company and the name of client.
Effective date of contract and expiration date if any.
Where will the insurance payments go to? I recommend having the payments go to the
physician's office to avoid any legal matters.
There should be a contract stating the provider will send copies of
EOB's of all payments.
Providing monthly reports or meeting once a month or
quarterly.
How will payments be made?
You can either charge by percentage.
Some of the average ranges are 8 to 15% or an average of $4 to $10 per
claim. Things to consider are the
patient volume, average income and if the client is established or not.
Who will do the coding?
You will want to interview the company that you will be outsourcing with
to make sure they are not doing anything illegal first. You do not want to do billing for a company
that is in violation.
Once you have interviewed with them, you can either agree to
have coding stay with them or choose to outsource coding as well for an
additional fee.
