Wednesday, December 2, 2009

What You Must Know: Medical Transcription Billing Basics

By Susan Eliot

If you are going to become a medical transcriptionist, you are going to need to know how the pay system breaks down. Right now you may be wondering if you are going to be getting paid by the hour, audio hour, line, or page. Thoughts of not getting paid what you are worth may linger inside your mind. Do not worry, because the information here should settle your anxieties quite a bit.

The very first thing you must know is that no matter what, charging by the line is the smartest decision. Sure, charging by the hour may seem more appealing, especially if you are new, but when your production speeds up, you are going make much more than you would any other way. So, just keep in mind to charge by the line, and you will be one of those people who are making a comfortable paycheck a few years from now.

As an independent contractor working on many medical transcriptionist jobs, you are given the ability to charge whatever you wish. However, you must remain realistic because charging too much could cause you to end up getting laughed right out of the contract. Undercharging will cause you to feel overworked and like your job isn't worth the time you put into it. You want to make sure that the transcription pay you charge is realistic both to you, and to your client.

One thing to keep in mind is what the going rate is in your area. You can easily track down this information by asking other medical transcriptionists what they charge. Or, if you prefer a more direct approach, you could call around and ask a couple of doctors' offices what they are usually charged. Remember that what you charge and your level of experience are related.

For example, if beginner's transcription pay is 10 cents per line in your area, and you have several years of experience, you could probably get away with charging around 11 or 12 cents per line. Take into account the type of reports you will be transcribing, the turnaround time required, and the amount of work you are expected to receive from the client each month. If the reports are simple enough for you to understand, and the turnaround time is reasonable, you might provide a discount, but that is your decision. Only you know how much you and your time are really worth.

Medical transcription billing is made a lot more straightforward through means of a contract. The contract that both you and your client come to an agreement on should make very clear the amount being charged, as well as payment dates. Payment is usually requested by most transcriptionists twice per month, but again, that is completely up to you.

The amount of medical transcription pay you charge should be reasonable, but also be reflective of how valuable your skills are. Once you get more experience, medical transcription billing really isn't all that difficult. As you grow in experience, you should be able to come up with the appropriate rates for your accounts.

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