Thread-Index: AcU/YqsbrXbFG3ZlSs+QBhu2/5Zv3wAD/n4A

Thread-Index: AcU/YqsbrXbFG3ZlSs+QBhu2/5Zv3wAD/n4A
From: "Locke's in Colorado" <lockek@comcast.net>
Mailing-List: list Practiceimprovement1@yahoogroups.com; contact Practiceimprovement1-owner@yahoogroups.com
Date: Tue, 12 Apr 2005 09:26:06 -0600
Subject: RE: [Practiceimprovement1] cash paying patients, medicare and medicaid
Reply-To: Practiceimprovement1@yahoogroups.com

This topic has been discussed on other lists and some of the shake out was...

1. If you don't give a discount to more than 50% of your patients, the discounted rate can't be considered your "real" rate

2. Most docs would be happy to give a 30% discount to Aetna, UHC, or even Medicare if they would pay the entire bill at the time of service...I know I would.

3. The reality is that is costs $8-12 (at least) to process a bill. So if a patient is seen for a $100 visit, it makes economic sense to give them a 10% discount of $10 off since even if you collected the $100, you would lose at least the $10 in billing costs.

4. There has been a counter argument put forth that we shouldn't give discounts to cash paying patients. It's their choice to have a high deductible insurance or no insurance at all (not always, but many patients "play the odds" that they won't get sick and will save a bunch of money in premiums by going with out insurance).

Yes, these patients pay the full "rack rate" instead of the discounted rate we give the insurers, but they also save $500-1,000/month in premiums that others pay every month. So that "expensive" $100 visit once per year for sinusitis is a drop in the bucket compared to the $6,000-$12,000 per year they save by going "bare".

5. Some have said not to give discounts to anyway...and for those patients that truly need care but can't afford it...give it as charity care and write it off.

Our office has a 10% cash discount if the bill is paid in full on the day of service.

Just some thoughts. I'm not saying they are right or wrong, just more than one way to skin that cat.

:-)

Kelly Locke, MD
Basalt, CO
Eau Claire (WI) Family Medicine Residency 1994
5 Years in Air Force -- [Laughlin AFB (Del Rio, TX) // Spangdahlem AB, Germany]
Alpine Medical Group -- Private Group Practice since 1999
http://www.alpinemedical.md
Job Share w/ Wife
AMG went independent from hospital MSO 10/04
AMG made downpayment on Centricity EMR 12/04
Planned Centricity EMR installation April/May 2005