Billing Done by Publicly Traded Company? What is at Risk Here?

October 5, 2006

The main factor at risk is the money you put into your pocket. Dealing with a billing agent that is publicly traded can result in your hard earned income being taken from your pocket to cover the companies expenses, not to mention to put more money into the shareholders pockets.

Less then 1/3 of publicly traded companies have Wall Street analyst coverage due to the cost and difficulty of getting and analyzing financial data. The catch 22 is with out this data, not only do investors suffer, but the companies themselves cannot maximize their ability to raise capital.

Out of pocket expenses incurred with the initial public offering can range between $175,000 and $500,000. In addition, the ongoing expenses can be very significant, these will include:

  • Annual listing fees
  • Public relations
  • Investor relations
  • Quarterly reporting
  • Annual audits
  • Annual reports
  • Shareholders ‘meetings, etc.

On top of all this, the main goal of management in a publicly traded company is to maintain and then increase shareholder value. Key factors in determining shareholder value include:

  • Price-earning and dividend ratios
  • Earnings per share
  • Overall liquidity of the companies stock

The price of the stock in turn will be a factor in management decisions for the simple reason; a shareholder expects to make a profit. The investors will expect quarterly profits that are consistently higher then the last. This usually results in a push for short-term earning results. So how can a billing agent consistently raise profits and continue to cover expenses? Simple, consistently raise the cost of their service. The pressure to maintain this growth may cause management to loose sight of their mission; Satisfying the customer (i.e., YOU). Their new goal in business becomes satisfying the shareholder. Do you want to take a back seat to somebody that has no interest in your financial future just because they bought stocks in your billing agent?

Vachette Pathology has been successful nationwide reversing the trend of your workload increasing and your payments decreasing. We have helped over 300 pathologists to put more money back into their pockets. Our main goal is to increase your income, and put more money back into your pocket, not a shareholders. If you have any questions or for further information on this subject, please contact Mick Raich.

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