COST ANALYSIS
Physicians/practices have been losing money year after year due to drops in insurance payments and higher malpractice insurance. Its' a fact that in 1997 - 1998 some practitioners were making $300,000 per year and today that number has fallen to about $170,000. Effective January 1, 2002 physicians faced yet another 5.4% drop in Medicare payments. In 2010 Medicare has propsed another 21% drop in payments to physicians.
A billing service can actually save physicians/practices money and assist in streamlining their operations compared to the way they are presently accustomed to doing business.
For example, a physician/practice is presently spending the following to process their claims, per year.
Medical Billing Staff | $19,200.00 |
Billing/Office Manager | $32,000.00 |
Envelopes/Statements | $ 250.00 |
Postage | $ 1,200.00 |
Phone/Fax | $ 1,800.00 |
Consumable Office Supplies | $ 600.00 |
Computer, Software, Clearing House | $ 1,800.00 |
| |
ANNUAL TOTAL | $56,850.00 |
(These are not the only expenses to take into consideration but just a few examples).
Now, if physicians/practices would outsource their usual 100 claims a week to a billing service instead for processing, and the billing service would charge $3.00 per claim:
AVERAGE AURORA MEDICAL
BILLING SERVICE BILLING
$17,400.00 | FOR THE SERVICE | $15,600.00 |
$ 100.00 | STATEMENTS | $ 100.00 |
$ 1,000.00 | APPEALS | $ 00.00 |
$ 750.00 | RESUBMISSIONS | $ 00.00 |
$ 150.00 | MONTHLY REPORTS | $ 00.00 |
$ 575.00 | SETUP FEES | $ 00.00 |
$ 1,000.00 | CONSULT./TRAINING | $ 00.00 |
$ 3,000.00 | MONTHLY FEES | $ 00.00 |
| | |
$23,975.00 | ANNUAL TOTAL | $15,700.00 |
IN-HOUSE | $56,850.00 |
SAVINGS WITH AV. BILLING SERVICE | $32,875.00 |
SAVINGS WITH AURORA MEDICAL | $41,150.00 |
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