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 |
| Amount Collected | $700,000 | $900,000 |
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