Medical Billing Provider Setup Fee

An area of debate is how much or do you charge a setup fee for a new client in your marketing billing business.  While there isn't necessarily a right answer here are some pro's and con's.

Pros:

Quick up-front cash that can provide up to $1,000 in many cases, depending on the size of the practice. 

Can cover startup costs (such as fixing coding errors or keying demographic data)

Even a modest upfront fee can give you the confidence that the client is serious about beginning has something to lose if they jump to another provider. 

Cons:

Some doctors, when they contact you is because they are one step away from bankruptcy because the last medical billing company did such a poor job that they are out of money.  While these are the ones who should be paying a large upfront fee so you can recover funds and fix coding errors, they are in a bad position to pay and will be the most likely to stick with you for the long haul if you do a good job.

When marketing your medical billing business as a way to save a physician money it can be an uncomfortable conversation to say there is an upfront fee, especially if there is little work in setting them up.