Know your numbers and Improve Your RCM In-House Physician Group and Solo Practice Calculator We are on a mission to change the conversation about what it takes to improve Revenue Cycle Management for doctors. Because at the end of the day, it’s how much money you collect that matters most to your practice’s bottom line. To help you make the best decision for your practice, we’ve created a specialized calculator to help you to better assess the costs and benefits of employing an in-house billing team. *For demonstration purposes only. This represents total employee costs, downtime, physician time, and lost insurance collections. Other in-house costs not shown here include: office space, equipment & leases, HR & 401k admin, IT support, employee training (billing/coding/collections), coding books, HIPAA training/compliance, file storage, utilities, office supplies, liability & cybersecurity insurance, printer maintenance, postage, clearinghouse fees, and document destruction. Call CMB today to compare our rates and see your potential revenue increases.
In-House Billing Revenue Analysis
In-House Physician Group and Solo Practice Calculator — Your Results
Specialty How many providers in the practice? Total Practice Revenue Collected Average In-House Collection Rate Your average annual insurance collections rate. If unknown, default to 90%. Unless you have documentation, this can be as low as 86%. Total Value of Claims at 100% Lost revenue (value of claims – revenue collected) At California Medical Billing and Revenue Management (CMB), our average collections rates range between 95–97% annually. Please note that this isn’t a promise or guarantee. Each practice is unique. Benefit #6: Our average collections rates are between 95–97% annually. Total Lost Revenue and Costs for In-House Billing. In-House Billing Department Answer How many full-time billers do you have on staff? Average Salary per Hour (Full-Time Employees) How many part-time billers do you have on staff? Average Salary per Hour (Part-Time Employees) How many Billing Managers do you have on staff? Average Salary per Hour (Billing Manager) Total Employee Annual Base Salaries Benefit #1 of outsourcing your billing to CMB: Outsourcing to CMB greatly reduces employee overhead. Pay no salaries when you outsource your billing and insurance collections to us. Employee Benefits (40% of salary) The average benefits and overhead burden for doctors in California is 40% of salary. This includes payroll taxes, health insurance, SDI, and CalSavers obligations. Benefit #2: With CMB you’ll eliminate employee benefits including PTO, medical, dental, vision, and workers’ comp. We’re dedicated to our clients. Total Employee Annual Salaries (including Employee Benefits) Utilization & Hidden Costs Answer Employee Utilization rate (time spent on billing) If you’re unsure, the rate defaults to 60%. Utilization rates include average PTO and vacation leave. Benchmark for high-performing teams is 80%; average for most medical practices is 60%. The 20% gap represents lost revenue / idle payroll cost that impacts your ability to collect all revenues owed. Idle costs due to poor utilization Benefit #3: With CMB you’ll never pay for downtime or absorb idle costs from poor utilization. Our team is dedicated to billing and insurance collections. Staff Turnover Cost The average annual turnover for medical billing professionals is 33%, and replacement is estimated at 60% of salary. Benefit #4: Never worry about managing staff turnover or replacing qualified billers. Physician Time Managing Billing Staff (hrs/provider/yr) Estimate hours your physicians and/or administrator spend resolving billing issues, reviewing reports, and managing staff. If unknown, attribute 2 hours per week per provider (≈104 hours/year per provider). Benefit #5: At CMB we manage the people and processes, greatly reducing your time and effort. Physician Opportunity Cost $250/hr is a conservative estimate. Physician billing rate is typically $250–$400/hr. Practice Management Software Average $300 per provider per month, or $3,600 annually. Estimated total annual costs Get a Free Practice Analysis and Quote.
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