WHAT IS MY INCOME POTENTIAL?
We suggest implementing a percentage-based billing model for your services. This approach fosters a mutually beneficial partnership with your doctors, giving them peace of mind. They can trust that you will exert maximum effort to ensure they receive optimal payments since your income is directly tied to theirs. Alternatively, you may consider charging on a per-claim basis in some cases.
Under the traditional percentage method, medical billing company owners typically charge between 6% and 8%. As an example, an average doctor's office generates around $50,000 per month for their practice. If you charge 6% of this amount, it would result in $3,000 per month in billing fees for your company, equating to $36,000 per year. With just a few clients of similar size, your medical billing company can thrive.
One Medical biller can often manage the billing needs of 1 to 5 average-sized doctors without the need for additional staff. However, beyond 5 doctors, it may be necessary to hire another biller to maintain efficiency. This is particularly relevant for medical billing service providers offering full practice management since servicing 5 average-size providers can occupy a significant amount of time. Starting out, some medical billing company owners allow one biller to handle as many accounts as possible until they are profitable enough to expand by hiring additional billers. Eventually, some have even grown their operations to handle hundreds of accounts.
Medical Billing Academy Clients are defined as one of two main categories based on how they operate their business:
TEAM MANGER
[ $150k-$500k | YEAR]
AVERAGE PROFIT OVER THE FIRST THREE YEARS
Under this arrangement, the Owner will manage a compact team comprised of 1 to 5 employees. While the owner may remain engaged in marketing and management aspects, their involvement in day-to-day operations will be less pronounced. Instead, their primary focus will be on driving business growth and expansion.
ENTERPRISE LEVEL
[$250k-$1M+ | YEAR]
AVERAGE PROFIT AFTER THE FIRST THREE YEARS
At this stage, the Owner assumes the role of a genuine CEO. They provide overarching guidance to their team of 5+ employees, focusing on the bigger picture and overseeing their performance, rather than being directly involved in day-to-day operations. Exceptional Owners have successfully expanded their businesses to cater to a substantial client base, often serving hundreds of clients.
Once the business is established, roughly half of our clients initiate their business in a part-time capacity using the Owner-Operator model, and others opt for full-time engagement at each stage. By the end of the second year, the majority of our Clients progress to the Team Manager or Enterprise Level. From there, some clients opt to sustain their business at that level, while others pursue further growth and scalability.