In a press release issued this morning, Homer G. Farnsworth M.D., unveiled a new business plan wherein interested TPA partners can participate in a 12% fee of gross billed charges on every hospital claim that comes through their doors.
“Our audit firm loves Charge Masters!” enthused Dr. Farnsworth. “Hospitals are our friends. Without them we would have to file for a Chapter 7. We approve and even encourage ever increasing hospital charges. It is not uncommon for hospitals to increase their charge master rates frequently, which of course, benefits us and our TPA partners!”
“Since our fee is tagged to gross billed charges, we don’t really care where a plan sponsor sets their reimbursment levels. It doesn’t matter to us, we get paid the same either way, which of course eliminates any accusations of conflict of interest competitors may level at us” stated Farnsworth in a question and answer session immediately following the press conference. “In fact, we don’t really care how thorough audits are, nor do we check them. We outsource almost all of our audits to various firms located here and there and everywhere. We take pride in being one of the best audit brokers in the industry!”
“Insurance brokers and consultants who consider placing business with us are encouraged to ask about our lucrative bonus arrangement on every hospital claim we audit. We promise total confidentiality – we believe in non-disclosure, afterall it’s NoneJa and it’s Swiss!”
TPA commissions are 25% of fees earned. This is in additiion to a TPA’s normal administration and revenue sharing fees with subcontractors such as PPO networks, stop loss carriers, subrogation, large case management outsourcing, etc.
“We have a case in South Texas that generated $900,000 in audit fees. The TPA earned a hefty $225,000 for doing nothing!” said Courtney Courthouse, Executive VP of Farnsworth Management & Audit Company.
“No additional work was required, other than forwarding claims to a lock box in Georgia” added Dr. Farnsworth in between noon-hour cocktails.
For more information, contact Homer G. Farnsworth, M.D. @ RiskManager@RiskManagers.us
From a TPA:
Interesting post. Who starts your truck in the morning?