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# What Are Some of the Issues Arising from the Percentage Based Model?

Susan Day
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May 30, 2017

## What Are Some of the Issues Arising from the Percentage Based Model?

If you are establishing your own practice there are several ways you should consider to pay or reimburse the clinicians you employ.

One method is the Percentage Based Model which is certainly the most popular method used.

It works by the clinician getting paid a certain percentage of what is paid to the practice for each claim. In most cases the clinician is paid after the practice is paid, both because the money isn’t available prior to that time and the percentage cannot be calculated without knowing exactly what insurance is or is not going to pay on any individual claim.

What Are Some of the Issues Arising from the Percentage Based Model?

Knowing What to Pay Each Clinician

Many practice managers prefer the percentage model and feel that it more equitable, and they have made it work for them.

Some clinics offer rewards for volume, where the percentage can go up if the clinician hits a certain case load target for the month.

However, when insurances are paid, clinicians may end up making less income than they originally thought.

This may lead to feelings of mistrust and resentment among practitioners.

Percentage Model Leads to Conflict

When claims remain unpaid some clinicians may feel the office staff is doing enough to resolve their claims.

This may lead to frustration if they see the claims going unresolved for an extended period of time, especially if they are waiting to be paid.

Keep Precise Records and Maintain Practice Harmony

Keeping Precise Practice Records

In the Percentage Model each clinician is encouraged to keep their own accounting records to ensure they are paid accurately every month.

This can lead to feelings of hopelessness as many clinicians are never quite sure how much they will be paid each month.

As well, the practice much have precise accounting records. This requires hiring staff who are compete and committed to keeping exact records,

While many practices don’t see this as an issue, there is always room for error, and recording keeping is being duplicated all the time.

At the heart of every profession is the need to be paid equitably and in a timely manner, therapists are no different.

If you are going to consider implementing the Percentage Model ensure that it is managed well and your clinicians are trained in keeping their own records.

Therasoft can help you minimize paperwork and streamline your practice.