Understanding the current and potential revenue for your practice may seem like it would be a complex task. And it can be, especially if you don’t have an understanding or knowledge of all the fees and expenses that need to be taken into account along with the revenue your billing department brings in.
At ML Medical Billing, we’re committed to helping medical practices grow their bottom line. In addition to providing stellar medical billing services in Los Angeles, we provide valuable education like our Medical Billing calculator so practices can see first hand how their revenue can change drastically for better with just a few changes. In this blog, we’ll break down how you can use this essential billing tool to help improve your practice’s revenue.
How to Use the ML Medical Profit Calculator
We set up our billing calculator to help practices determine how much additional profit can be made when you outsource your billing to ML Medical billing. By using the calculator, you’ll get a clear picture of how much you can potentially improve your profits when you allow us to handle your billing needs.
For this step (line 1), you’ll want to enter your monthly collection receipts. This is the amount that your billing department currently collects on your behalf. This can be an actual number if you know it or it can be a projected number. After that, our billing calculator immediately calculates your annualized receipts for you (line 2).
In this section, you will see firsthand how outsourcing your billing to an expert like ML Medical Billing can improve your collected revenue. On line 3, the billing calculator is set to 5% because this is an average percentage that practices can expect to experience. However, some practices have experienced an increase in profits of up to 20%. Once you’ve set your chosen percentage (or kept it at 5%), the calculator will automatically calculate the difference your practice can experience (line 4). On line 5, it will give you an updated annualized total for your revenue.
Now that we’ve discovered what’s possible for growing your revenue, we need to discuss and calculate the costs that will impact your bottom line. In this section of the billing calculator, you’ll input your practice’s billing fee. The calculator is set to a default of 6% (line 6), which is the average fee most practices pay when using ML Medical Billing for their billing needs. This number can also vary depending on the needs of your practice. Once you’ve set your billing fee, the calculator will automatically calculate your annual billing fees (line 7).
This final step is critical for getting an accurate, updated revenue number. In this step, you will need to enter on line 8, your current cost for all billing services. This number will encompass your entire current cost for any:
- Outsourcing fees
- Staff salaries/payroll
- Payroll Taxes
- Software costs
- Employee benefits
As you will see this result is actually much higher than the fees ML Medical Billing would collect in order to handle your billing needs. The final number the profit calculator provides is the estimated profit to your practice can benefit from by using ML Medical Billing (less billing fees).
In a nutshell, not only can working with ML Medical Billing improve your collection percentage, but we can also decrease your billing costs. We do this by employing a staff of billing experts who remain up-to-date on coding changes and utilize a streamlined billing process to ensure efficiency and accuracy.There are currently over 10,000 billing codes being used for medical purposes and our staff is well-versed in all of them. To maximize your bottom line, you’ll want to use billing services that can say the same. Not only that, but you’ll also want a biller who knows all the common billing mistakes that can delay or stop reimbursement as well as knowledge as to how to avoid them.
Increase Your Practice’s Revenue Today
At ML Medical Billing, we’ve been assisting medical practices like yours since 1985 with one goal in mind: taking care of all the billing needs so you can focus on patient care. To know more about how we can help you, contact our team of specialists today.
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