We charge for billing services based upon the specialty, payer mix, and scope of services provided. Our rates generally fall between 6% and 10% of collected revenue, which we define as money the practice collects from patient visits, less refunds.
We get the same emails that you do, where offshore medical billing companies offer a 3% contingency rate with 97% collection. The services these companies provide are not the same as those offered by stateside billing companies but in any event, if your practice is evaluating prospective billing companies primarily by their proposed billing rate, then HCS will probably not be a good fit.
An increasingly popular model that we see is ‘unbundled’ medical billing. With this model the customer pays a percentage for each component of the billing service, say cash posting or working accounts receivable. Some business models take this a step further and propose to charge the customer a contingency rate for labor only, with the customer bearing all other costs of collection – electronic claims submission, software costs, postage, and so forth.