PMI's Outsourced Billing / RCM Calculator

Number of Full Time Equivalents working in your billing department

3 FTE's

1 FTE's

15 FTE's

Average billing staff hourly wage?

If you pay someone an annual salary, simply divide the total salary by 2,080 hours. $45,000 per year equals $21.63 per hour.

$20 per Hour

$10 per Hour

$45 per Hour

Average amount spent per month on each employee's benefits

$500 per month

$0 per month

$1,200 per month

Estimated annual wage & benefit cost for internal billing department

Annual recurring computer software and hardware cost per employee

$3,600 Per Month

$0 Per Month

$4,800 Per Month

Estimated Monthly Office Space Rental/Cost For Billing Staff?

Enter "$0.00" if practice is unable to reduce costs for office space if the billing department was outsourced.

$500 Per Month

$0 Per Month

$2,500 Per Month

Annual Estimated Cost For Internal Billing Department

Estimated Annual Practice Charges

Practice's Current Gross Collection Rate?

Total Payments Divided By Total Charges

Calculated Practice Annual Revenue

Expected Increase In Gross Collection Rate From RCM?

Practice should aim to see a 5-10% increase in gross collection rate

5%

20%

Expected Collection Rate After Outsourcing Billing Department To RCM

Estimated Annual Collections After Billing Department Is Outsoruced To RCM

Expected RCM Fee

Percent of payments they plan to charge the practice

6%

12%

Estimated RCM Fee

Annual Billing Costs Practice Retains After Outsourced To RCM

Depending on the RCM the practice selects, there are some costs such as statement processing fees, credit card fees, and patient responsibility balance collection costs that remain with the practice. Be sure to enter such annual costs here.

Total reduction/credit(s) in practice expenses after outsourcing RCM

i.e. Reduction in EMR software fees, office rent, etc

Expected Net Practice Cost For RCM Solution

Cost Of RCM Solution Versus Internal Billing Department