Flat rate billing is a pricing strategy used by businesses in several industries. You may be passing up this strategy for your practice because you're not sure it applies to a medical practice, however flat rate billing can be applied to several routine tasks that you already do. How does this help you with revenue cycle management? Rest assured, it does—here’s how.
Focus on results, not time
Many people have routine reasons they need to visit a doctor regularly. For example, it might be to fill a prescription or to schedule quarterly blood tests to check a diabetes condition. Perhaps a parent is bringing their child in for immunizations or a woman is coming in for their annual pelvic exam. Whatever the reason, these are routine tasks that occur regularly that use similar resources to get them done. Your medical staff already knows how much time it will take you to perform the tasks, so you can account for your time.
Normally you have a flat fee in place for the exams or actual tasks, but not the time that you spend with the patient. If you billed by the hour, you are mindful of all the details that must be completed before and after an appointment. However flat-rate medical billing is a charge for what you know you will do and the amount of time you allot to each patient. This means you can focus on the quality of care you deliver to the patient in front of you, not how much time is ticking away or the administrative tasks that follow.
Fluctuating bills are difficult to predict, and that can make the insurance company and patient temperaments wear thin. A flat rate billing plan means the patients and insurance company will know how much their bill will be for a cholesterol checkup long before they come in. You and your staff will also know how much of your personal time can be allotted to making your patients feel respected, not rushed.
Another benefit of flat rate billing is your revenue cycle can be predicted by how many clients you see during any giving week.
Quality & transparency go hand in hand
With flat rate billing you know how much of your time can be spent with patients. This is transparency you can count on. The key is to strive for quality and efficiency for the services you offer, and price accordingly. Routine tasks and your time can be brought together for smoother revenue management.
If you haven’t considered applying flat rate medical billing for your practice, perhaps you should.