Our company generates qualified, in-market inquiries from physicians and practice managers who are actively looking to outsource their revenue collection / medical billing to a 3rd party service. We advertise on Google/Bing/Yahoo and other sources.
Contents
Lead volume by practice
Pricing by category
How lead generation marketing works
Cost to acquire a customer
Lead generation success patterns
Inquiries route instantly and we offer different routing options for exclusive (routes 1x) to only one buyer and for shared (routes up to 5x) to multiple buyers. Medical billing service providers buy on a per-record basis with no minimums, no monthly commitments. We can apply geographic filters to narrow to your serviceable area. Buyers get as many records as they fund in their balance and can pause at any time. Our approximate monthly and annual national volume generated is in the Practice Category Volume table and our rates are in the Pricing by Category table.
Lead Volume by Practice
| Practice | Approximate Volume (#/month) | Approximate Volume (#/year) | Practice Category |
| Acupuncture | 4 | 42 | Chiropractic |
| Chiropractic | 7 | 84 | Chiropractic |
| Massage therapy | 3 | 38 | Chiropractic |
| Dentistry | 4 | 50 | Dental |
| Community health | 2 | 16 | Hospital |
| Hospital | 7 | 84 | Hospital |
| Ambulance | 5 | 58 | Other |
| Dietitian | 2 | 16 | Other |
| Holistic medicine | 1 | 12 | Other |
| Home health | 2 | 16 | Other |
| IVF fertility | 1 | 8 | Other |
| Medical spa | 1 | 8 | Other |
| Medical transportation | 1 | 12 | Other |
| Midwifery | 1 | 8 | Other |
| Other | 17 | 216 | Other |
| Pharmacy | 1 | 4 | Other |
| Family medicine | 8 | 100 | Primary care |
| Behavior therapy | 2 | 24 | Mental health |
| Mental health | 12 | 158 | Mental health |
| Psychiatry | 15 | 196 | Mental health |
| Psychology | 6 | 74 | Mental health |
| Social work | 1 | 12 | Mental health |
| Substance abuse | 3 | 38 | Mental health |
| Anesthesiology | 3 | 30 | Specialty |
| Audiology | 1 | 12 | Specialty |
| Bariatrics | 1 | 12 | Specialty |
| Cardiology | 2 | 16 | Specialty |
| Dermatology | 1 | 12 | Specialty |
| DME | 3 | 34 | Specialty |
| Emergency medicine | 1 | 8 | Specialty |
| Endocrinology | 1 | 4 | Specialty |
| Gastroenterology | 1 | 4 | Specialty |
| Genetics | 1 | 4 | Specialty |
| Geriatrics | 1 | 8 | Specialty |
| Gynecology | 1 | 8 | Specialty |
| Hematology | 1 | 4 | Specialty |
| Hospice | 1 | 12 | Specialty |
| Immunology | 1 | 8 | Specialty |
| Infectious disease | 1 | 12 | Specialty |
| Internal medicine | 2 | 20 | Specialty |
| Laboratory | 1 | 4 | Specialty |
| Multi specialty | 2 | 24 | Specialty |
| Nephrology | 1 | 4 | Specialty |
| Neurology | 4 | 50 | Specialty |
| Occupational medicine | 1 | 12 | Specialty |
| Occupational therapy | 2 | 24 | Specialty |
| Oncology | 1 | 8 | Specialty |
| Ophthalmology | 2 | 24 | Specialty |
| Optometry | 4 | 46 | Specialty |
| Orthopedics | 2 | 24 | Specialty |
| Otolaryngology | 2 | 24 | Specialty |
| Pain management | 2 | 24 | Specialty |
| Pathology | 2 | 16 | Specialty |
| Pediatrics | 4 | 50 | Specialty |
| Phlebotomy | 2 | 16 | Specialty |
| Physical therapy | 2 | 24 | Specialty |
| Plastic surgery | 2 | 24 | Specialty |
| Podiatry | 2 | 24 | Specialty |
| Preventative medicine | 2 | 24 | Specialty |
| Proctology | 1 | 4 | Specialty |
| Pulmonology | 1 | 4 | Specialty |
| Radiology | 2 | 24 | Specialty |
| Rheumatology | 1 | 12 | Specialty |
| Skilled nursing | 3 | 30 | Specialty |
| Sleep medicine | 2 | 24 | Specialty |
| Speech therapy | 6 | 70 | Specialty |
| Surgery | 5 | 62 | Specialty |
| Thoracic medicine | 1 | 4 | Specialty |
| Urgent care | 1 | 12 | Specialty |
| Urology | 1 | 8 | Specialty |
| Vascular medicine | 1 | 8 | Specialty |
| TOTAL | 190 | 2,200 | TOTAL |
Pricing by Category
Our medical billing leads cost between $60-420 per lead, depending on your category selections. You define your initial campaign settings and may change these at any time.
| Practice Category | Price (exclusive) | Price (shared up to 5 buyers) |
| Chiropractic | $190 | $100 |
| Dental | 120 | 60 |
| Hospital | 190 | 100 |
| Other | 120 | 60 |
| Primary care | 480 | 225 |
| Mental health | 300 | 130 |
| Specialty | 480 | 225 |
How lead generation marketing works
A physician or practice manager completes our lead form requesting medical billing quotes. We process this request and route the lead to your email, phone, and/or lead management software within a fraction of a second. Your sales team attempts to make immediate contact with the prospect.
What is a “lead”? A “lead” is a single piece of customer contact info and the meta-data entered by the user (practice type, practice size, EMR type, etc). An example lead includes the user contact information (John Smith, 213-555-1212, johnsmith@example.com, John’s Chiropractor Office, Madison, WI) plus meta-data (practice=Chiropractor, monthly billing=$20,000, EMR=Allscripts, Physicians=3).
What is an “exclusive lead” vs. “shared lead”? A lead that routes to only one lead buyer is “exclusive”. A lead that routes to two or more buyers is “non-exclusive” or “shared”.
Why buy shared leads? Shared lead buyers believe that practices comparison shop after getting any quote, and are comfortable competing against other medical billing companies. They pay less per lead and trade-off potentially lower conversion rates from lead to customer.
Why buy exclusive leads? Exclusive lead buyers believe that fewer competitors increase the odds of converting leads to customers. They are willing to pay more per lead to increase conversion rate from lead to customer.
What is “lead routing”? A copy of the customer’s contact info and meta-data is “routed” to the lead buyer’s email inbox, posted to their CRM, or texted to their cell phone. Their sales team initiates immediate contact with the contact.
What is a “lead marketplace”? Our system is a lead marketplace where multiple buyers have overlapping matching criteria. Demand for any lead is reflected by price, where the higher price leads have higher demand. Once a lead is generated then the lead is auctioned to buyers based on exclusivity settings, volume capping, lead prices, geography reach, practice categories, and buyer budgets.
Can you give an example how the lead marketplace works? A chiropractor in Madison, WI completes a request for quote. Our system looks for demand, finds the matching coverage and ranks the offers highest to lowest:
MATCHING COVERAGE TO NEWEST LEAD
BuyerA – rate = $140; geography = MN, MI, WI, IL; time since last lead = 8 hours ago
BuyerB – rate = $140; geography = 200 miles from Chicago, IL; time since last lead = 31 hours ago
BuyerC – rate = $100; geography = national; time since last lead = 68 hours ago
Highest offer: $140 BuyerA and BuyerB (tie at $140)
Action: Route to BuyerB because they have the highest rate, and have gone the most time without receiving a lead
In the example above, the system matched the lead to several buyers. Since BuyerA at $140 and BuyerB at $140 tied at the highest price, the system will select the one buyer who has gone the most number of days without receiving a lead. BuyerA receives the lead exclusively and BuyerA’s balance is deducted by the lead price. All other buyers have no changes.
Cost to Acquire a Customer
We always ask new potential buyers for their allowable customer acquisition cost. We are pre-screening for fit. Many medical billing companies got started through referrals, which have no marketing cost but also have limited scalability. Paid marketing costs money but scales virtually infinitely. All medical billing companies want to grow their service but few know their allowable customer acquisition costs.
Calculations for Customer Lifetime Value (CLTV) and Cost to Acquire a Customer (CAC) are fundamental marketing ratios. Replace these sample numbers below with your own to determine your Allowable CAC:
ALLOWABLE CUSTOMER ACQUISITION COST (CAC)
Average customer lifespan: 24 months
Average service fee per month: $1,000/month
Average operating costs per month: $700/month
Average gross margin per month: $300 / month ($1,000 revenue less $700 operation costs)
Customer Lifetime Value (CLTV): 24 months * $300 / month = $7,200
Target Ratio CAC:CLTV ratio: 1:3
Allowable Cost to Acquire a Customer (CAC): $7,200 CLTV * (1 CAC/3 CLTV) = $2,400 / customer
In the example above, you know what one customer is “worth” over their lifetime. And you estimate how much marketing media spend you can incur to acquire one additional customer. You estimated a final allowable Customer Acquisition Cost of $2,400 / customer. This means you can safely afford $2,400 in marketing media spend to acquire one new customer.
Lastly, let’s estimate what “actual” marketing acquisition costs may look like. For the numbers below, we assumed an average cost per lead (your cost may be lower or higher depending on practice area selections and shared/exclusive setting) and a guesstimated yield (your yield may be lower or higher depending on your product offering and your sales expertise).
“ACTUAL” CUSTOMER ACQUISITION COST EXAMPLE
“Actual” average cost per lead: $150 / lead
“Actual” yield (signed customers per leads received): 1 customer acquired for every 12 leads
“Actual” cost per customer: ($150 / lead) * (12 leads / 1 customer) = $1,800 / customer
In the example above, the buyer bought 12 leads at an average $150/lead and signed one customer for $1,800 in marketing cost. Is this good? Bad? Hard to say. Marketers compare their allowable CAC ($2,400) to their actual CAC ($1,800). If actual CAC run below allowable CAC then they invest more into that marketing source. If actual CAC run above allowable CAC then they pause that marketing source.
We ask potential lead buyers for their “Allowable Customer Acquisition Cost”. Lead buyers who are successful with our marketing source have achievable allowable CAC targets.
Lead Generation Success Patterns
Paid marketing is a good fit for some medical billing companies. Our long term buyers generally share these traits:
- Sales experience – The owner or sales lead has prior experience selling medical billing services
- Paid marketing experience – Previously purchased advertising from other paid marketing sources
- Coverage – Combination of geographic coverage & practice area selection that will match to at least ten (10) leads/month
- Appropriate marketing budget – Allocates enough budget to accurately determine actual customer acquisition costs
- Achievable allowable customer acquisition costs (CAC) – Knows target economics, and their targets are achievable
Sound interesting? Tell us more about your business needs – reply to the email from our business development team and schedule an intro conversation.