Medical Billing Company - Medical Professional Services Inc.
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YOU ARE HERE:  HOME / OUTSOURCE VS IN-HOUSE / EXPENSE COMPARISON
Medical Billing - Outsource vs In-House

Outsource vs In-House:  Expenses

Similar employee expense, dramatically different result

Actual costs of outsourcing to a reputable medical billing company is very comparable to the employment costs associated with having an in-house biller.  The difference: realizing maximum revenue potential and immediate savings through technology solutions provided.  For illustration, we have put together an approximate expense comparison - see below.
**Approximate calculations based on $500,000 annual gross revenue, 200 statements per month

Summary: In-House Billing


Description:

- 1 FTE @ $17.00/hr
(salary, benefits, and taxes)
- Vacation / Sick Pay
(2 wks vacation / 5 days sick pay)
-Training & Reference Materials
(seminars, training materials, coding books & subscriptions)
- Software / Hardware Expenses
(billing software, PC support, upgrades, maintenance, etc.)
- Office Supplies for Billing
(insurance forms, paper, toner, etc.)
- Patient Statement Expenses
(postage, paper, envelopes, toner, etc.)
- Clearinghouse Fees
Expense:

-$45,000.00

-$1,700.00


-$2,000.00


-$4,000.00
(minimum)

-$400.00

-$1,800.00

-$1,500.00

APPROXIMATE ANNUAL EXPENSE:

RETURN ON INVESTMENT (ROI):
(An in-house staff in a busy medical office is subjected to many distractions, causing lost productivity and ultimately lost revenue)
-$56,400.00

.00

APPROXIMATE ANNUAL TOTAL:
-$56,400.00

Summary: Outsourced with MPS


Description:

- Billing Fee @ 7.5% (example)
(rate/fee determined case-by-case)
- Vacation / Sick Pay
(2 wks vacation / 5 days sick pay)
-Training & Reference Materials
(seminars, training materials, coding books & subscriptions)
- Software / Hardware Expenses
(billing software, PC support, upgrades, maintenance, etc.)
- Office Supplies for Billing
(insurance forms, paper, toner, etc.)
- Patient Statement Expenses
(at cost)
- Clearinghouse Fees
Expense:

-$37,500.00

N/A

N/A


N/A


N/A

-$1,080.00

N/A

APPROXIMATE ANNUAL EXPENSE:

RETURN ON INVESTMENT (ROI):
(ROI based on proven 5-25% increase in revenue by direct result of better billing and collections performance)
-$38,580.00

+$25,000.00
(at 5% better performance)

APPROXIMATE ANNUAL TOTAL:
Added Revenue with Medical Billing Company
-$13,580.00

MEDICAL PROFESSIONAL SERVICES, INC.

Established in 1997, MPS is a professional Medical Billing Company.  A proven leader in providing expert medical billing & coding, revenue cycle management, and practice management services to physicians and group practices nationally.

CONTACT US TODAY!

If your practice is experiencing cash-flow or accounts receivables issues or if you are starting a new practice, contact MPS for a risk-free, no-obligation consultation.  We are ready to assist in any way we can!

MEDICAL BILLING SERVICES:

REQUEST A PROPOSAL
Billing Services Overview
Technology Included
Demographics & Charge Entry
Insurance Claims Processing
Insurance Denial Management
Payment Posting
Patient Balance Billing
Patient Inquiries / Billing Questions
Accounts Receivable Follow-up
Management Reports

OTHER SERVICES:

Insurance Credentialing & Contracts
Web Design / Marketing Consultations

CORPORATE OFFICE:

Medical Professional Services, Inc.
7960 Donegan Drive, Ste 205
Manassas, VA  20109

Phone:  (703) 249-8500
Fax:  (703) 249-8600
Email:  info@medicalprofessionalservices.com

  • ©1997-2018 Medical Professional Services, Inc. - A Medical Billing Company providing Billing and Practice Management Services