A Practical Example of Home Health Cost Savings with Outsourced Medical Billing
According to recent CMS.gov data, 10% of all home health care claims are rejected. With the average claim being approximately $2000, you can see how the cost of not being able to capture this portion of your total claims can quickly add up. In addition to the money you can recoup by having fewer claims rejected when you work with Dominion Revenue Services for outsourced billing, there’s another part of the savings equation to consider: the money saved by reducing your home health care facility’s overhead costs.
Consider this simple example: Your home health care facility sends out $X of billed claims in a year, resulting in $X in collections from in-house billing vs. $X in collections from an outsourced team. The next question should be does outsourcing cost more than the revenue from the additional collections? To calculate this, your home health care facility will need to factor in overhead costs such as:
- Billing department equipment and office space
- Salaries for staff
- Payroll tax costs for the staff
- Costs for software and computer hardware
- Other miscellaneous expenses for supplies
Below, we provide an example of how to calculate the potential cost savings of outsourced medical billing for your home health care agency.
You can calculate your own potential cost savings by using this spreadsheet and completing it with your own agency’s numbers. You may be surprised to see how much you could be adding to your bottom line by making the simple change to outsourced medical billing. Our conservative calculation could save you almost $10,000 a month!
If you have questions about these calculations or would like to discuss your specific situation further, please contact our home health care billing team for a consultation.