Are your monthly administration fees eroding your profit?
If you are unsure what your monthly admin and insurance fee is, it’s a good idea to find out as high admin costs will erode your income and profit.Some providers charge on a sliding scale so if you don’t have a very high number of patients on plan, you will be paying pro-rata and very high cost for administration; as much as £4 per patient per month in some cases.
Look out for hidden costs too. For example, some providers insist upon a minimum number of patients on plan and if you fall below that figure, they will apply a minimum monthly fee. And check to see if there are any annual licence fees to pay, or charges for failed Direct Debit payments. Why should you pay for a failed collection? Check to confirm your provider will write to patients annually to increase your fees and that this service is included in the monthly admin fee. What admin fee is charged for children’s plans? It may not be relevant to every practice, but a child plan is likely to be £5.00 per month so you don’t want to be paying over the majority of this as an admin fee.
Lots of plan providers claim to provide lots of additional services, but many of them are accessible only when you pay additional fees so be careful to establish exactly what you are getting for your money.
What to do:
2. Work out how much the business might save by moving to a new provider – it can add to thousands of pounds a year
1. Look around and compare costs and what is included before taking any decision about your preferred plan provider