Dr. Hilldale has asked you to set up a fee schedule for the office. Some physician practice will bill at rates from 100% of medicare to 500% of Medicare. Both rates have their disadvantages regarding profitability.

1, what do you think the most appropriate range should be when setting your in-office fees and why?

2, How is the conversation factor for the fee schedule determine and why is this important?

3, in your opinion, why would billing at 100% or 50% of the Medicare rate be unfavorable?