Medical Billing Outsourcing vs. In-house Medical Billing

The New England Journal of Medicine states that a typical doctor's overhead and billing expenses account for 43.7% of his/her gross income. This translates into an average of about one and a half clerical workers per doctor at an average annual cost of $51,564. This does not include the hidden costs like vacation time, insurance, and the like.

If you are like most medical providers, you probably never had the time to work out the comparison of outsourcing your billing vs. doing it in-house. Below is a quick analysis of potential savings by outsourcing your billing needs:

In-House
Base Pay: $14.50/hour
Yearly: $30,000.00
Medicare & Social Security: $2295.00
Retirement: $1040.00
Disability:$720.00
Health Care: $5220.00
Vacation/Sick: $3270.00
Annual Collections: $470,000.00
Annual Total 1 In-House Biller: $42,585.00

Medical Billing By Payment Automation Network
Medical Billing at: 5% of collections
Annual Collections: $470,000.00

Total Annually: $23,500.00

Savings: $19,085.00

*Does not include:
Software $500 per year
Paper/Envelopes/Stamps $1800 per year
Clearinghouse Fees $1500.00 per year
Reference Materials $350.00 per year

Medical Billing at 7% of collections

Total Annually: $32,900.00

Savings: $9,685.00

Could Outsourcing your medical billing make financial sense for you in your practice? Would you like a free detailed analysis for your office? Contact us to setup a time to discuss your specific situation. We will be happy to run your numbers and give you a detailed cost savings analysis.

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