For those of you in PP who use a billing company....what's your net cost of billing?
My company charges 7% of collected revenue.
What's everyone else getting taken for....and if it's a lot better than my company, can I use your company?
At my goldmine gig, Mil, we employed our office, owned our building.
Our cost was under 5%. But over 4.5%.
Doesnt seem like alot initially, but....uhhhhh.....if 7% is the benchmark we're looking at, a savings of 2.5% on a 6 million dollar company added about 30K to each of our five partner's salaries....but that wasnt the best part....
You can buy a building with a loan secured by your company... under a separate LLC....then charge "rent" to your anesthesia company, which pays your other company.....
.....you can hire people who work for YOU.....maybe you can lure some people from your current billing company....thats what we did initially....
billing was more efficient, AND we built equity in commercial real estate that the partners owned.
The equity in commercial real estate, that we paid for by paying "rent", turned out to be alotta coin, which I got 1/5 of in my buyout.
Is your company at a point where you could consider internal billing?
Theres alotta advantages IMHO.
In addition to the above monetary gains, our office people
spoiled us rotten.
I didnt realize how good I had it with all the intangibles until I left.
During my eight years there, our office
1)took care of all my doctor licensure, insurance company applications/updates paperwork
2)Had my company H2
🙂D) washed weekly, took care of all maintenance on vehicle
3)Brought partners lunch from wherever we wanted to eat
4)Paid all bills applicable to company (licensure, vehicle, beeper, cell phone, company credit card)
5)Took care of travel arrangements for CME travel
I could go on and on.
Bottom line is these people worked for us...and they took care of us....which equated to more personal time devoid of taking care of menial things....
Man, I miss that.....