Healhcare Billing Comparison
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BILLING ANALYSIS Taino Consultants Inc. Dr. Jose I. Delgado
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Analysis for healthcare professionals and organizations considering the costs of in house billing versus outsourcing.
Transcript of Healhcare Billing Comparison
BILLING ANALYSIS
Taino Consultants Inc.Dr. Jose I. Delgado
BASIC ISSUECost Effectiveness of outsourcing billing Variables under consideration Costs Center Efficiency
VARIABLES UNDER CONSIDERATION Human Resources Hardware and Software Claims Processing
Employees
IT
HUMAN RESOURCES
* http://www.bls.gov/oes/current/oes433021.htm
Median billing Salary ($16.80/hr) $ 34,944.00
Federal and State Taxes (15%) $ 5,241.60
Health ($500/Month) $ 6,000.00
Vacations & sick $ 1,320.00
Training $ 500.00
Subtotal $ 48,005.60
Billing Personnel (1.5) $ 72,008.40
HARDWARE AND SOFTWARE
Software $229/month/Provider $ 2,748.00
Hardware $ 2,400.00
Subtotal $ 5,148.00
CLAIMS PROCESSINGPatients/day/Provider 20
Working days/month 20
Claims/month/Provider 400
Clearinghouse Cost (.05) $ 20.00
Paper Statements ($7/statement) $ 2,800.00
Costs/month $ 2,820.00
Claims Processing Costs $ 33,840.00
IN HOUSE BILLING COSTS
Human Resources $ 72,008.40
Billing/Hardware $ 5,148.00
Claims Processing Costs $ 33,840.00
Estimated Costs $ 110,996.40
OUTSOURCE COSTSCollectionsOutsourced Costs
$ 240,000.00 $ 14,400.00
$ 360,000.00 $ 21,600.00
$ 480,000.00 $ 28,800.00
$ 500,000.00 $ 30,000.00
$ 720,000.00 $ 43,200.00
$ 1,000,000.00 $ 60,000.00
$ 1,500,000.00 $ 90,000.00
$ 1,750,000.00 $ 105,000.00
$ 1,850,000.00 $ 111,000.00
COST COMPARISONProviders 1 5 10
Avg Collection/month $ 30,000.00 $ 150,000.00 $ 300,000.00
Human Resources $ 72,008.40 $ 192,022.40 $ 384,044.80
Hardware/software $ 5,148.00 $ 18,540.00 $ 37,080.00
Claims Processing $ 33,840.00 $ 169,200.00 $ 338,400.00
In house/billing costs $ 9,249.70 $ 44,146.87 $ 88,293.73
Outsource/billing costs $ 1,800.00 $ 9,000.00 $ 18,000.00
OTHER ISSUES TO CONSIDER Staff turnover Priority of billing versus other tasks Expertise and experience Collection rate
In-house 96.3% Outsource 99%
Liability and Compliance Outsourcing Risks
SUMMARY Outsourcing is more cost effective Research company before outsourcing
Not all billing companies created equal Verify key issues
Collection rate Compliance actions ICD 10 readiness Certified Coders
TAINO CONSULTANTS INC.19 years in businessHealthcare, IT & Business ConsultantsVeteran Owned, USA BasedSmall Business Administration CertifiedWWW.TainoConsultants.com
