Healhcare Billing Comparison
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This document analyzes the cost-effectiveness of outsourcing billing for Taino Consultants Inc., highlighting various cost factors including human resources, hardware, software, and claims processing. The analysis shows that outsourcing may be more cost-effective than in-house billing despite potential risks and the need for thorough research on outsourcing companies. Important considerations include collection rates, compliance, and the expertise of the billing provider.
Healhcare Billing Comparison
- 1. BILLING ANALYSIS Taino Consultants Inc. Dr. Jose I. Delgado
- 2. BASIC ISSUE Cost Effectiveness of outsourcing billing Variables under consideration Costs Center Efficiency
- 3. VARIABLES UNDER CONSIDERATION Human Resources Hardware and Software Claims Processing Employees IT Process
- 4. 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
- 5. HARDWARE AND SOFTWARE Software $229/month/Provider $ 2,748.00 Hardware $ 2,400.00 Subtotal $ 5,148.00
- 6. CLAIMS PROCESSING Patients/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
- 7. 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
- 8. OUTSOURCE COSTS CollectionsOutsourced 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
- 9. COST COMPARISON Providers 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
- 10. 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
- 11. 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
- 12. TAINO CONSULTANTS INC. 19 years in business Healthcare, IT & Business Consultants Veteran Owned, USA Based Small Business Administration Certified WWW.TainoConsultants.com