Out-sourcing vs In-House

 

Similiar employee expense, dramatically different results.

Actual costs of outsourcing to a reputable medical billing company will far out way in-house billing. We have put together an sample expense comparison - see below.

 

**Approximate calculations based on $1,500,000 annual gross revenue, 600 statements per month

Expense Summary:

In-House Billing Expenses:

3 Qualified FTE @ $17.00/hr (salary, benefits, and taxes)-

Vacation / Sick Pay(2 wks vacation / 5 days sick pay)-

Training & Reference Materials(seminars, training materials, coding books & subscriptions)-

Software / Hardware Expenses(billing software, PC support, upgrades, maintenance, etc.)-

Office Supplies for Billing(insurance forms, paper, toner, etc.)-

Patient Statement Expenses(postage, paper, envelopes, toner, etc.)-

Clearinghouse FeesExpense:-$45,000.00-$1,700.00-$2,000.00-$4,000.00(minimum)-$400.00-$1,800.00-$1,500.00APPROXIMATE ANNUAL EXPENSE:RETURN ON INVESTMENT (ROI):(An in-house staff in a busy medical office is subjected to many distractions, causing lost productivity and ultimately lost revenue)-$56,400.00.00APPROXIMATE ANNUAL TOTAL:-$56,400.00Expense Summary: Outsourced with MPSDescription:- Billing Fee @ 7.5% (example)(Fee determined case-by-case)- Vacation / Sick Pay(2 wks vacation / 5 days sick pay)-Training & Reference Materials(seminars, training materials, coding books & subscriptions)- Software / Hardware Expenses(billing software, PC support, upgrades, maintenance, etc.)- Office Supplies for Billing(insurance forms, paper, toner, etc.)- Patient Statement Expenses(postage only)- Clearinghouse FeesExpense:-$37,500.00N/AN/AN/AN/A-$1,080.00N/AAPPROXIMATE ANNUAL EXPENSE:RETURN ON INVESTMENT (ROI):(ROI based on proven 5-25% increase in revenue by direct result of better billing and collections performance)-$38,580.00+$25,000.00(at 5% better performance)APPROXIMATE ANNUAL TOTAL:-$13,580.00MPS: Comprehensive Medical Billing SolutionsExperienced, professional, low cost. Maximize revenue while minimizing back office expenses. [MORE]MPS Newsroom & Blog: Timely Industry NewsMedical billing tips, industry news and articles relevant to your practice's billing. [MORE]Get started

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