In-House versus Outsourced Billing Operations
As practice management evolves thru the introduction of government requirements and new technology, physicians are faced with the decision of which operational methods will save expenses and generate revenue for their practice. Medical billing is one of the operations that should be carefully evaluated.
Below is a quick analysis of potential savings by outsourcing your billing:
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In – House Staffing
Annual Collections: $500,000.00
Base Pay: $14.50/hour
Yearly: $30,160.00
20% of Salary for Benefits: $6,032.00
- Medicare & Social Security
- Vacation
- Health Insurance
Annual Cost of 1 In-House Biller: $36,192.00
|
Medical Billing by MGOPR Billing
Annual Collections: $500,000.00
Medical Billing at: 5% of collections
Annual Cost of Billing: $25,000.00
Annual Savings: $11,192.00
|
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**Other Potential Savings:
| Software: |
$500.00 per year |
| Paper/Envelopes/Stamps: |
$1,800.00 per year |
| Clearinghouse Fees: |
$1,500.00 per year |
| Reference Materials: |
$350.00 per year |
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In addition to the direct costs associated with staffing and billing operations, there are indirect costs associated with hiring, providing work space and managing billing staff. When you outsource billing you can be confident your billing operations will be uninterrupted by staff turnover, vacations, sick leave and other HR concerns.
To find out how MGO PR Billing Company can assist your practice click
here to contact a Practice Resource Consultant.
