Medical Billing Cost Calculator

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

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