Cost
Comparison
*Average
costs and collection percentage are based on a primary care
physician
Assumptions / Notes:
1.
Billing specialist salary of $10.50/hr.
Additional expenses not included in the “In House Billing”
option:
a.
Workers’ Compensation Insurance for billing specialist.
b.
Medical insurance and any additional fringe benefits for
billing specialist.
2.
Employer Tax of 1.45% Medicare, 6.2% FICA, .08% FUTA,
assuming 1.33% State Unemployment.
3.
Coding update, HIPAA regulations, and new guidelines.
4.
Mid-range computer calculated for first year.
i.e. single drive computer – no data redundancy (Raid
drives). Computer maintenance
calculated after first year.
5.
Low-end tape backup calculated in first year.
Maintenance calculated after first year.
6.
Mid-range billing software calculated.
Maintenance, support, or upgrade agreements are not included in the
“In House Billing” option:
a.
Software maintenance agreements (required with some software
companies)
b.
Upgrades – are upgrades required? What about retroactive upgrades?
7.
Percentage is determined by specialty and patient mix.
8.
Based on 8% of $30,000 Gross Collections
9.
$300 - $500; $400 is based on one remote user connection
