Willis & Willis will help make your revenue cycle management process more efficient and profitable. Whether your challenge is in charge entry, coding, claims submission & appeals or patient billing & collections – let us show you how partnering can save your practice time and money.
Here a few of the costs we can help reduce in your practice:
- Payroll expense
- Employee Health Insurance Expense
- Necessary Continued Education Expense
- Postage and Electronic Claims Submission Expense
- Time Expense
- Employee turnover and Personnel Issues
This table shows these benefits in a 2 provider practice with 2 medical billing employees.
Annual Revenue Cycle Cost Comparison
| In-House RCM Costs | Outsource RCM Costs | |
|---|---|---|
| Salary (2 employees @ $14.50/hour) | $60,000 | N/A |
| Payroll Taxes (2 employees) | $9,000 | N/A |
| Benefits (2 employees) | $15,000 | N/A |
| Administrative Cost (accounting, payroll, office equip, etc.) | $15,000 | $4,000 |
| Claim Processing Cost ($120/provider/month) | $2,880 | N/A |
| Annual Gross Charges (2 Physicians) | $1,300,000 | $1,300,000 |
| Gross Collection Rate* | 60% | 70% |
| Annual Net Receipts | $780,000 | $910,000** |
| Outsourced RCM Costs (7% of net receipts) | N/A | $63,700 |
| Total Cost of Collections | $101,880 | $67,700 |
| Collections Minus Costs | $678,320 | $842,300 |
* – Gross collection rate does not take into account contractual adjustments (Medicare, Medicaid, UHC etc.)
** – Industry studies show that utilizing an outsource RCM service typically increase net receipts by 5-15%. We used 10% in this example. Actual results will vary.
