Read the official blog post HERE about Developing a Rock Solid and Compliant Discounting Policy.

When it comes to discounting your services, there are two things you need to be aware of. First, you need to be aware of legalities and compliance. The other simply has to do with profitability.

In regards to legalities and compliance in the healthcare world, you have to be aware that there are licensing boards, State Laws, Federal Laws, and Federal Agencies that set rules and regulations that you must follow.

The limitation of how large of a discount is defined by the OIG (Office of Inspector General) Department of Health and Human Services. In 2009, they rendered an opinion letter basically saying that a prompt pay discount can be provided and should be between 5% - 15%.

As a general rule for health care providers, a  5%-15% time of service discount is the largest discount you can give for services not covered by insurance without using a Discount Medical Plan Organization (DMPO). Please note that you should seek advice from a knowledgeable expert on this topic.

Regarding profitability, you will need to determine your Target Collection Level™. The Target Collection Level™ is the amount of money you should be collecting on an average per visit for a cash plan. It is used as a "benchmark" for determining how much you should discount your plans (while remaining compliant).

This is done to make sure your plans are profitable. When you create a care plan, you will compare your Ave$/Visit to your TCL. If you need to increase your Ave$/Visit to get closer to the TCL, decrease the Plan Discount. If you need to decrease your Ave$/Visit, increase the Plan Discount. For more information on the Target Collection Level and how to determine it, click HERE.