Production/billing question

[kwyjibo]

Hi,
I am currently reviewing an offer and I have a question about how it states the collections will be "adjusted."

-All J and Q codes will be deducted from the collections calculation.
-Cost of cosmetic injectables will be deducted.
-Collections from laser procedures will have 10 percent deducted to cover maintenance.
-Cost for patch testing strips will be deducted
-koh cpt code will be deducted.

Although I understand the part about cosmetic injectables being deducted, is the rest of this standard in how collections is calculated?

Thanks for your help!

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[asmallchild]

Hi,
I am currently reviewing an offer and I have a question about how it states the collections will be "adjusted."

-All J and Q codes will be deducted from the collections calculation.
-Cost of cosmetic injectables will be deducted.
-Collections from laser procedures will have 10 percent deducted to cover maintenance.
-Cost for patch testing strips will be deducted
-koh cpt code will be deducted.

Although I understand the part about cosmetic injectables being deducted, is the rest of this standard in how collections is calculated?

Thanks for your help!

Seems kind of petty to me to deduct these items but I wouldn't expect that they would represent a significant amount within your collections calculation.

It would be helpful to see an example of how collections are calculated for other physicians in the group (they can blank out the names). I think that would give you a better idea of how fair the offer is.

 

[Skindoc83]

I think they are nickel and dime-ing you and I fear that that may only foreshadow how they will treat you once you sign the dotted line. I always suggest that people get multiple offers so they can compare them side by side. The outliers seem to really stand out that way

 

[reno911]

KOH deduction seems hilariously absurd because it is a pittance.

 

[Slack3r]

J code seems to make sense, ie for PDT. If the practice is paying a few hundred dollars per stick of Levulan, and then paying the J code reimbursement back to the billing doc, that’s a several hundred dollar hit for every session of PDT.

Unless I misunderstand how J codes work.

I do agree the KOH is absurd.

 

[Dral]

Seriously, lol@ the KOH. It's almost like they're passively telling you to not do them and just throw antifungals at people if you suspect.

"Take your time to do the KOH, but we're keeping the $15 you would have gotten paid to do the KOH".

Money talks, but it sounds like that place has not really incorporated what may be right for the patient into their big picture philosophy.

 

[kwyjibo]

I'd like to thank everyone for their comments. This is from an offer for a PE practice FYI.

 

[werd]

I think it's pretty standard to deduct the practice cost of Botox and fillers from productivity calculations; at my practice the patch test application payments are credited to the practice and not the provider that ordered it.
the other things I've never heard of as part of a productivity and compensation calculation. it seems like they are basically deducting the cost of their supplies from your production calculations. it's not standard, and would give me some pause.
given their proposed adjustments, it seems fair that you could ask what a atypical associate's productivity is and how much on average is lost in these "adjustments."

 

[MOHS_01]

I think it's pretty standard to deduct the practice cost of Botox and fillers from productivity calculations; at my practice the patch test application payments are credited to the practice and not the provider that ordered it.
the other things I've never heard of as part of a productivity and compensation calculation. it seems like they are basically deducting the cost of their supplies from your production calculations. it's not standard, and would give me some pause.
given their proposed adjustments, it seems fair that you could ask what a atypical associate's productivity is and how much on average is lost in these "adjustments."

Not only is it standard, it's prudent, reasonable, and necessary. It's a direct expense.

 

[estingray]

I agree dinging you for KOH is silly and dinging you for patch testing may be destructive as in my area reimbursement is lower than cost of materials, essentially meaning you will subsidize every patch test you do out of your own paycheck. Since it's PE they probably have negotiated better reimbursements than little old me, but still.

I agree with above. Would give me pause, but then again I wouldn't work for PE no matter what.