Expense Comparison: Outsource vs. In-House
Similar employee expense, dramatically different result.
Actual cost of outsourcing to a reputable medical billing company is very comparable to the employment costs associated with having an in-house biller. The difference with Allsource Medical Management is we recognize the maximum revenue potential and immediate savings through technology solutions provided. For illustration, we have put together an approximate expense comparison – see below.
**Approximate calculations based on $500,000 annual gross revenue, 200 statements per month.
Expense Summary: In-House Billing Outsourced with Allsource Medical Management using same:
| Description: | Expense: |
| – 1 FTE @ $18.00/hr(salary, benefits, and taxes) | -$48,000.00 (per) |
| – Vacation / Sick Pay(2 weeks vacation / 5 days sick pay) | -$2,160.00 |
| -Training & Reference Materials(seminars, training materials, coding books & subscriptions) | -$2,000.00 |
| – Software / Hardware Expenses(billing software, PC support, upgrades, maintenance, etc.) | -$4,000.00(minimum) |
| – Office Supplies for Billing(insurance forms, paper, toner, etc.) | -$400.00 |
| – Patient Statement Expenses(postage, paper, envelopes, toner, etc.) | -$1,800.00 |
| – Clearinghouse Fees | -$1,500.00 |
| APPROXIMATE ANNUAL EXPENSE | -$59,860.00 |
| 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) | $.00 |
| APPROXIMATE ANNUAL TOTAL: | -$59,860.00 |
| Description: | Expense: |
| – Billing Fee @ 8.0% of collected(Fee determined case-by-case) | -$40,000.OO |
| – Vacation / Sick Pay(2 weeks vacation / 5 days sick pay) | N/A |
| -Training & Reference Materials(seminars, training materials, coding books &subscriptions) | N/A |
| – Software / Hardware Expenses(billing software, PC support, upgrades, maintenance, etc.) | N/A |
| – Office Supplies for Billing(insurance forms, paper, toner, etc.) | N/A |
| – Patient Statement Expenses(postage only) | N/A |
| – Clearinghouse Fees | N/A |
| APPROXIMATE ANNUAL EXPENSE: | -$40,00.00 |
| RETURN ON INVESTMENT (ROI):(ROI based on proven 5-25% increase inrevenue by direct result of better billing and collections performance) | +$50,000.00 |
| APPROXIMATE ANNUAL TOTAL: | +10,000.00 |
| TOTAL ADDED REVENUE Annually: | + $69,860.00 |