Fee schedule analysis

Simply stated, the fee schedule is th single most important financial tool within the medical practice. And contrary to general consensus, what a practice charges has a dynamic impact on future allowable calculations. A medical practice is no different from any other business in this respect; and, as with other industries, the fee schedule should reflect the value of the practice's services. Neglecting the fee schedule or, even worse, allowing payors to dictate the value of those services is tantamount to failure. Through the use of analytics by applying sound econometric models, such as true costs, market dynamics, competitive factors, and value-based pricing, the healthcare organization will optimize its revenue potential. While these concepts may sound foreign to some, the fact is, they are well within reach. Through the application of basic business techniques, every practice has the ability to develop and maintain a fee schedule that will meet or exceed its financial needs.