I talked with my office manager who has been involved in this sort of
thing. She stated that there are two ways that agencies typically
handle this; either they charge a fee in a range from 15-25% of
collections - typically escalating as the accounts age because the
longer they are on the books, the more work it has taken, or you buy the
AR up front, typically for 25% of the gross amount. The second way is
justified by the fact that you are typically gonna collect about 50% of
outstanding AR and then you get your 25%. Either way, both parties
should come out about the same.
--
Lynn D. Montgomery, M.D.
Obstetrics & Gynecology, Maternal-Fetal Medicine
The Birth Center/Rocky Mountain Women's Health
1211 S. Reserve St.
Missoula, Montana, 59801
406-549-0978
fax 406-549-0987
e-mail: apgar10@thebirthcentermt.com
________________________________
From: ob-gyn-l@obgyn.net [mailto:ob-gyn-l@obgyn.net] On Behalf Of
________________________________
Charlie Chambers
Sent: Tuesday, July 24, 2007 11:50 AM
To: Multiple recipients of list OB-GYN-L
Subject: Re: collecting AR
Thanks Lynn. Do you have a range of percentages that would be fair? I
have no idea what would be reasonable.
On Jul 24, 2007, at 10:42 AM, Lynn Montgomery wrote:
Charlie,
I would suggest doing it similar to what a billing service would do and
take a percentage of what is collected. You can negotiate a percentage
that will cover your costs and maybe even a little profit and still get
her some revenue.
Lynn
Lynn D. Montgomery, M.D.
Obstetrics & Gynecology, Maternal-Fetal Medicine
The Birth Center/Rocky Mountain Women's Health
1211 S. Reserve St.
Missoula, Montana, 59801
406-549-0978
fax 406-549-0987
e-mail: apgar10@thebirthcentermt.com
________________________________
From: ob-gyn-l@obgyn.net <mailto:ob-gyn-l@obgyn.net>
________________________________
[mailto:ob-gyn-l@obgyn.net] On Behalf Of Charlie Chambers
Sent: Tuesday, July 24, 2007 11:31 AM
To: Multiple recipients of list OB-GYN-L
Subject: collecting AR
Wonder if anyone has had any experience with closing out someone's AR?
We have an unrelated specialist who has been paying us to use
space/billing etc. She's moving away and therefore closing her practice.
She'd like us to work what remains of her AR after she leaves. Anyone
have any experience doing this, and what would be fair to charge to work
the AR?
Thanks
************************************************************************
*
Charlie Chambers
Hood River, OR
cchamber@alumni.rice.edu <mailto:cchamber@alumni.rice.edu>
"No matter where you go...
there you are."
Dr. Buckaroo Banzai
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*
Charlie Chambers
Hood River, OR
cchamber@alumni.rice.edu
"No matter where you go...
there you are."
Dr. Buckaroo Banzai
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