JUNE 2008
VOLUME 5 NO. 6
PATIENTS & PRACTICE

PRACTICE MANAGEMENT

Avoid pitfalls when charging patients

Block fees can be a financial boon, but MDs must play by the rules


With overhead costs rising and patients' demands for uninsured services growing, some doctors are realizing that charging 'block fees' can help them get paid for all their time.

In Calgary, for instance, the economy is booming yet many of the city's FPs are closing their practices, says Dr Linda Slocombe, president of the Calgary and Area Physician's Association. "The overhead costs have become too much with high rent prices."

To cover costs, many are turning to directly charging patients annual block fees for uninsured services like filling out forms and doing telephone or email consults.

This practice, however, has caught docs some flak throughout the country from patients who consider it a money grab. With a solid understanding of the rules, doctors can calm their patient's fears while getting their due — as much as $20,000 a year extra for some family practices, by some estimates.

FOLLOW THE RULES
A spate of block fee violations over the past few months has drawn the public's ire. In April, the College of Physicians and Surgeons of BC ordered one clinic to stop promising fee-paying patients shorter wait times, reported the Vancouver Sun. Some doctors and clinic managers have threatened to kick patients out of their practices if they don't cough up the dough. One, Dr Thomas J Barnard of Leamington, ON, had his licence suspended two months and was hit with a $2,500 fine.

Those offences can be avoided, however. Guidelines for billing patients are simple, and similar across the country. Doctors can set their own block fee rates, but must offer their patients the option to pay piecemeal. Patients must be told how much each service costs individually and be given a list of services covered by the annual fee. Doctors cannot charge for priority booking and cannot turn away a patient who doesn't want to pay.

PAY POTENTIAL
Despite the straightforward rules and the promise of thousands of dollars, block fees aren't employed by FPs very often. Dr Ed Schollenberg, registrar of the College of Physicians and Surgeons of New Brunswick, says the college brought out guidelines for block fees back in 1999. "We thought it was a likely thing that people would do," he says. But it hasn't caught on there.

Many physicians across the country have made effective use of block fees, however. Dr Timothy Foggin of Burnaby, BC, found a new way to use annual fees. Recently he began using the CMA's latest web invention, mydoctor.ca, a tool that enables MDs to answer their patients' questions and monitor various conditions online. Because provincial billing schedules still haven't been tailored to factor in emerging technologies like mydoctor.ca, Dr Foggin decided this is exactly what block fees were designed for. He began giving patients who choose online consults the option of paying $25 for each virtual visit or a $40 to $100 a block fee for multiple consults. His experiment looks promising: he already has about 30 patients paying his block fees and, in early June, he sent out 600 letters to ask others if they'd be interested.

 

 

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