Pricing, Contracts, and Invoicing

MedPrecision charges a percentage of collections, typically ranging from 4 percent to 8 percent of net collections, with the exact rate set during the proposal based on monthly claim volume, payer mix, specialty complexity, and required service scope. MGMA 2024 Cost and Revenue benchmarks place the median outsourced billing fee for ambulatory practices at 5 to 7 percent of net collections, with hospital-based and specialty surgical practices typically at 4 to 5 percent and behavioral health, ABA, and DME at the high end of 7 to 9 percent due to authorization burden. Percentage of collections aligns vendor incentives with practice revenue: MedPrecision is only paid on dollars actually collected and posted, not on charges submitted. There are no setup fees, integration fees, or contract minimums for standard onboarding under 4 providers. Custom HL7 interface builds and on-site training carry separately quoted one-time fees.

The percentage of collections fee covers the full revenue cycle: insurance eligibility verification, prior authorization tracking, charge entry, CPT and ICD-10-CM coding review, claim scrubbing and submission via clearinghouse, ERA and EOB posting, denial management with appeals through level 2, patient statement generation and mailing, patient phone support during business hours, monthly KPI reporting against MGMA benchmarks, and a dedicated account manager. Specifically excluded items, when needed, are billed separately: paper claim postage at cost, certified mail for level 3 appeals, on-site training beyond the included two days, custom HL7 interface development, third-party clearinghouse fees if the practice requires a specific clearinghouse outside the standard stack, and patient collections beyond 120 days when transferred to a third-party agency. The practice retains full control over fee schedules, contracted rates, and any decision to send accounts to outside collections.

MedPrecision invoices monthly in arrears on the first business day of each month, calculated as the agreed percentage applied to net collections posted during the prior calendar month. Net collections are defined per HFMA standard as gross payments received from payers and patients, minus refunds issued, minus any duplicate payments cleared. The invoice itemizes payments by payer with reconciliation against the practice bank deposits so the practice can verify every dollar. Standard payment terms are net 15 with payment by ACH; credit card payment is available with a 2.9 percent processing surcharge passed through. MedPrecision does not hold or commingle practice funds: all payer payments deposit directly to the practice bank account, and MedPrecision invoices the practice for services rendered. This separation is a HIPAA and state-banking requirement and protects the practice from any vendor cash-flow risk.

Standard contracts run on a 12-month initial term with month-to-month renewal afterward, terminable by either party with 60 days written notice. The 60-day window covers the practical handoff period: payer enrollment changes (ERA/EFT redirection) take 30 to 45 days at most major commercial payers under federal HIPAA 837/835 transaction standards, and Medicare ERA enrollment reassignment under CMS-855 typically takes 30 to 60 days. Contracts include a Business Associate Agreement under HIPAA 45 CFR 164.504(e), data ownership clauses confirming all PHI and billing data belong to the practice, a return-of-data clause requiring full export within 15 days of termination, and a non-solicitation clause covering practice staff and patients. There are no penalties for early termination, no automatic price escalators, and no minimum claim volume requirements. Pricing renegotiation occurs only at the 12-month mark or upon major scope change.

Standard onboarding under 4 providers carries no additional fees. Five categories of optional or pass-through fees may apply when practice scope requires them: (1) custom HL7 v2.x or FHIR R4 interface development for legacy or non-standard EHR/PM systems, quoted at 4,000 to 12,000 dollars one-time depending on complexity, (2) on-site training beyond the included two days at 1,500 dollars per day plus travel, (3) provider credentialing services beyond initial mapping at 350 to 750 dollars per provider per payer per CAQH-aligned application, (4) third-party collections agency fees when patient balances over 120 days are transferred (typically 25 to 35 percent of recovered dollars charged by the agency, not by MedPrecision), and (5) postage at cost when the practice requires paper claim or appeal submission. All fees are disclosed in the proposal and require written practice approval before MedPrecision incurs them.

Pricing automatically adjusts because the fee is a percentage of collections: revenue growth or shrinkage flows through proportionally without renegotiation. MedPrecision does not impose minimum monthly fees or volume tiers that penalize seasonal practices, new practices ramping up, or practices reducing scope. For practices growing rapidly (typically over 30 percent year-over-year for two consecutive quarters), MedPrecision proactively offers a percentage reduction at the 12-month renewal, recognizing that fixed costs of running the account stay flat while collections grow. For practices contracting due to provider departure or specialty pivot, the percentage stays the same and the dollar fee shrinks with collections; no clawback or volume penalty applies. New practices in their first 6 months pre-credentialing often pay a discounted introductory rate (typically 1 to 2 percentage points lower) until first full revenue month, recognizing minimal collections during ramp.