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In-House Billing
Solo Practice |
Typical Monthly
In-House Cost |
Tech-Med
Billing Cost |
Real-Time Cost
(Enter your own values) |
Salary (per employee)
$16.50/Hr x 40 Hrs/Wk = $660
$660 x 52 Wks/Yr = $34,320
$34,320 / 12 months = $2,860,
$2,860 = one month gross pay |
$2,860.00 |
$2,250.00
Average of $30,000.00
Net Receivables at
7.5% |
|
Medical Benefits
Average PPO plan $300.00
(50% Employer's portion of dues) |
$150.00 |
NONE |
|
Sick Leave Based
on 1/2 day per month = 6 days per year |
$66.00 |
NONE |
|
Vacation Leave
Based on a one week paid Vacation per year |
$55.00 |
NONE |
|
Retirement Plan
Simple IRA
Based on a 3% Employer Contribution per month |
$85.80 |
NONE |
|
Deferred Compensation/ 401(k)
Employer matched contribution |
Varies |
NONE |
|
Workers Compensation
Based on $0.95 per $100.00 on payroll
California policy minimum $500.00 |
$27.17 |
NONE |
|
Payroll Taxes (estimated)
Social Security, Medicare, State Unemployment |
$219.16 |
NONE |
|
Paper Claims
(Cost of Supplies)
@ $0.54 per claim
Based on 30% of total monthly claims (200 claims) |
$108.00 |
NONE |
|
Patient Statements
(Cost of Supplies)
@ $0.59 per statement
Approximately 50 per month |
$29.50 |
NONE |
|
| TOTAL COST PER MONTH |
$3,718.13 |
$2,250.00 |
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ADDITIONAL COSTS FOR IN-HOUSE BILLING:
Office Space Lease; Office Equipment: (Computer System, Phone, Fax, Scanner, Copier, Filing System); Billing Software & IT Support; Coding Books; Updates; Training; Storage Space; Electricity; Phone Bills; Copy Charges; Office Supplies (HCFA Forms, Statement Forms, Envelopes); Printer & Copier Ink; Postage.
THIS COULD ADD UP TO THOUSANDS!
Myth: You lose control of the income.
Fact: A reputable billing company would have their eye on your income more so than an employee since their income is directly tied to performance and results. Your participation in reviewing receivable reports and statistics are entirely up to you. Participation in providing accurate and complete billing information will enhance your income. A physician and billing service need to work together to make sure your needs are met.
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