what is marginal approach
The marginal approach to billing can have a dramatic affect on your radiology practice. Marginal approach is a term used to describe a management philosophy adopted by many service providers in the billing industry.It warrants attention because of its dangerous consequences and prevalence in the industry.The marginal approach maximizes billing company profits at the expense of the group's revenue.Assume, for example, the average payment per procedure for your practice is $40, and your billing company is charging you 9.5% of net collections and wants to achieve a net profit margin of 10%. billing service that uses the marginal approach puts its profits before client collections. Over time, the marginal approach can be devastating to your practice. Determining whether your billing company or in-house billing department is using the marginal approach is relatively straightforward.