Get Paid Quickly, Efficiently, Affordably

 

 

OmniMD, Inc. is a multifaceted EHR, Practice Management, and Medical Reimbursement Solution provider. We know your time and expertise is better spent with your patients, so…
Let us worry about the rest!

Cost Factors

In-House Medical Billing

Outsourcing

Savings (Outsourcing)

Salaries & Wages 5-15%
Training Costs on Changing Regulations 100%
Office Space/Real Estate 100%
Benefits 100%
Office Supplies 100%
Recruiting Costs 100%
Office Equipment 100%
Software and EDI Costs 100%

Outsourcing Benefits

  • Economies of Scale
  • Reduces Billing Errors and Payer Denials
  • Improves Cashflow
  • Ensures Billing Compliance
  • Eliminates use of non-medical business office space
  • Reduce record storage space
  • Focus on patient care instead of billing
  • Reduce staff size and employees expenses
  • Tangible Results
  • Revenue Cycle Management Updated Technology & Analytics
  • No-cost Regulatory-compliance EHR
  • Paperless document storage
  • Eliminate sick pay, vacation pay, insurance benefits, workers compensation, etc.
  • Save on the high cost of equipment and software as rapidly changing technology translates into extra expenses
It is always a tough choice between keeping billing in-house and outsourcing to a third-party billing service for independent medical practices.

For some, it makes sense to let the experts handle the claims and is a no brainer. While others believe you can exercise better control by keeping it in-house. But finally, it boils down to the cost factor.

Could you be saving a few thousand to quarter million dollars?

Let’s take a hypothetical cost analysis as an example. It assumes that a three-provider practice handles an average of 80 claims per day. This works out to approx. 21,000 claims annually. At an average cost of $125 per claim, this is $2,625,000 in gross billing.

Now, let’s do the comparative math

Savings Calculator for 3 Physician Practice

In-House [Annual] Outsourced [Annual] Do It Yourself and Compare [Annual]
Billing Staff Salaries1 (Two employees at a salary of $3,800 per month each + 30% in taxes and benefits) $103,360 $0
Billing Software Cost ($150/provider/month) $3,600 $0
Hardware costs (Printer, cartridge, workstation) $500 $500
Continued Education Training Cost $3,000 $1,000
Ancillary Costs (Office Space/Office Supplies, Patient Statements, Others) $8,000 $0
Direct Electronic Eligibility Verification & Claim Processing Cost (Clearinghouse Fees $99/provider) $2,376 $105,000 (6% of collections)
Gross Collections $2,500,000 $2,500,000
%age of Gross Collections (including Adjustments, Write-offs, and Bad Debts) 60% 68%
Net Collections $1,500,000 (60% of $2,500,000) $1,700,000 (68% of $2,500,000) (modest 8% increase in collections with third-party)
Total Collection Costs $120,836 $106,500
Net Collections $1,379,164 $1,593,500
Final Savings $214,336
 

Savings Calculator for 3 Physician Practice

In-House [Annual] Outsourced [Annual] Do It Yourself and Compare [Annual]
Billing Staff Salaries (Two employees at a salary of $3,800 per month each + 30% in taxes and benefits) $103,360 $0
Billing Software Cost ($150/provider/month) $3,600 $0
Hardware costs (Printer, cartridge, workstation) $500 $500
Continued Education Training Cost $3,000 $1,000
Ancillary Costs (Office Space/Office Supplies, Patient Statements, Others) $8,000 $0
Direct Electronic Eligibility Verification & Claim Processing Cost (Clearinghouse Fees $99/provider) $2,376 $105,000 (6% of collections)
Gross Collections $2,500,000 $2,500,000
%age of Gross Collections (including Adjustments, Write-offs, and Bad Debts) 60% 68%
Net Collections $1,500,000 (60% of $2,500,000) $1,700,000 (68% of $2,500,000) (modest 8% increase in collections with third-party)
Total Collection Costs $120,836 $106,500
Net Collections $1,379,164 $1,593,500
Final Savings $214,336

Hard to Ignore Savings of More than Quarter Million Dollar

Since each practice is different so it is impossible to unequivocally state one formula fits everyone and IF this still is a nagging question to your mind to or not to outsource, consider the following and analyze your costs:

  • Your collection percentage is below par compared to the average for your specialty and area
  • Your billing processes are not efficient and presumably add to delayed collections (Higher Daily Sales Outstanding)
  • Your collections have not increased with increasing productivity and higher gross billing
  • You have high employee turnover
  • You’re starting a new practice with considerably high upfront costs
  • You’re not technology savvy and neither is your staff
  • You don’t have an in-house IT person to handle hardware and software problems and upgrades
  • You primarily want to focus on Patient Care and leave the business side to the experts
  • You’re unable to upkeep with regulatory changes

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