Article

Net v. Gross, it matters

Provided by:  Jennifer Kirschenbaum, Esq.
January 22, 2020
 
 
Question:

Jennifer, 

My employer is paying me 40% collections, how do I know if this is market? 

Thanks, 
Dr. P

Answer:

First, the best resource I can share on what is or is not market is the MGMA DataDive Tool.  Or recommend you speak with colleagues or recruiters on what is out there in your geographic region.  

Second, I cannot even begin to answer until I understand the question, and here, I do not understand what the question is because I do not know what "collections" means.  "Collections"' is amorphous - is if Gross or is it Net?  If "collections" is every penny that comes in, then that means "Gross" and if it means Gross, then what portion of the Gross.  Let's assume (safe bet) we are talking "Gross" attributable to your services.  Well, the 40% of Gross Collections may be grossly over-market.  Whereas, if we are talking "Net", then we need to understand what "Net"' means.  "Net" means Gross minus stuff.  With most things in life, the details matter, so when we talk "Net", what is the "stuff" we are minus-ing?  Is "Net" defined as "Gross" minus refunds, repayments and/or redos?  Or does "Net" also take into account other expenses, such as the cost of consumables or equipment, or corporate/administrative expense such as billing costs?  If so, then the share of Net just got a lot lower... 

How we define "collections", Net v. Gross, makes a big difference.  The devil is in the details; details you should be mindful of BEFORE you sign.   Let's get the language right before you are subject to it.  


 




Looking for the KK Healthcare Exchange?  Click Here. 

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Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
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K&K's Prepaid Legal Audit/Investigation Defense Now!
Net v. Gross, it matters-January 22, 2020-Jennifer Kirschenbaum

Article

Net v. Gross, it matters

Provided by:  Jennifer Kirschenbaum, Esq.
January 22, 2020
 
 
Question:

Jennifer, 

My employer is paying me 40% collections, how do I know if this is market? 

Thanks, 
Dr. P

Answer:

First, the best resource I can share on what is or is not market is the MGMA DataDive Tool.  Or recommend you speak with colleagues or recruiters on what is out there in your geographic region.  

Second, I cannot even begin to answer until I understand the question, and here, I do not understand what the question is because I do not know what "collections" means.  "Collections"' is amorphous - is if Gross or is it Net?  If "collections" is every penny that comes in, then that means "Gross" and if it means Gross, then what portion of the Gross.  Let's assume (safe bet) we are talking "Gross" attributable to your services.  Well, the 40% of Gross Collections may be grossly over-market.  Whereas, if we are talking "Net", then we need to understand what "Net"' means.  "Net" means Gross minus stuff.  With most things in life, the details matter, so when we talk "Net", what is the "stuff" we are minus-ing?  Is "Net" defined as "Gross" minus refunds, repayments and/or redos?  Or does "Net" also take into account other expenses, such as the cost of consumables or equipment, or corporate/administrative expense such as billing costs?  If so, then the share of Net just got a lot lower... 

How we define "collections", Net v. Gross, makes a big difference.  The devil is in the details; details you should be mindful of BEFORE you sign.   Let's get the language right before you are subject to it.  


 




Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!