Medical Economics reported in May 2016 in an article titled “Administrative Costs Are Killing US Healthcare” that “The U.S. devotes a larger percentage of its healthcare economy to administration (doing things like moving a claim through the system…) than any other country.”
I’d like to zero in on what you’re paying just to get paid for the services you’ve provided. I call it the Administrative Cost Monster (ACM). I can guarantee that the ACM is eating up too much of your hard earned revenue. Let me break it down for you:
|Description||In-House||Fore-ward Healthcare Solutions|
|Billing Staff Salaries (assuming 2 FTE)||$80,000||$38,400|
|% of Billings Collected||70%||90%|
|Billing Staff Costs (taxes, training, etc.)||$23,000||$0|
|Total Billing Costs||$103,000||$38,400|
|Amount Billed Per Year||$1,000,000||$1,000,000|
In the billings costs noted in the table, I am assuming a salary of $40,000 for each biller. The billing staff costs include taxes and training costs of $2,000 per FTE. I’m not including other costs such as space, office supplies, vacations, and benefits.
These are real numbers. In the example above, we are collecting $200,000 more for you at a cost of $38,400 (assuming 2 FTE) versus your costs of $103,000.
With us, in this example, $200,000 more is collected with administrative savings of $64,600. It just makes sense. Give us a call and explore what we can do for you. Don’t let the ACM eat up your profits.
Glenda Hill, MBA
877-327-5284 extension 1