Frequently Asked Questions

How does your billing service develop its rates? Your billing rate percentage seems high. We have spoken with other billing services that offered to do the billing for less. Why are you so high?

First of all, our billing services’ commission rate is not high according to industry standards. According to the HealthCare Billing and Management Association, the rates for dermatology billing range from 6.5% on the low side to 8.75% on the high side. Average billing rates were noted at 7.75% for 2008 contracts.

Our two billing services have maintained the average 8% billing rates for most of its 10 years since the companies were opened in 1997. The charges are all inclusive with the exception of the following which clients must pay for themselves:

Cost of opening and maintaining a lock box with their bank
Cost of mailing information to the billing service offices
Software vendor support costs
Cost of fee tickets

Note: There may be other computer related charges depending on the needs of the practice. When looking at rates, you must also always ask what charges are not included in the percentage rate. Many billing services charge extra (e.g., in addition to the percentage rate) for the cost of stamps, patient statements, CMS-1500 forms; just to name a few. Make sure when you negotiate a contract, have the billing service outline all extra expenses that will be incurred in addition to the commission rate and their process for increasing charges during the contract period.

Inga's answer...