Total Cost of Billing Current
Total One Time Costs (Table 1)
Total Fixed Costs (Table 2)
Total Annual Variable Costs (Table 3)
Total Cost
 
  Tables A - F must be completed to calculate Annual Variable Costs (Table 3)
Table 1 - One Time Costs for purchasing a Billing Solution   Table 3 - Annual Variable Costs
The total cost of hardware (Servers, routers, printers, PCs, laptops, scanners etc.) that are purchased to use your billing solution
Hardware 
 
The total annual cost of supplies used for billing. Complete Table A
Supplies (Complete Table A)
The total cost of the license to use your billing solution
License 
 
The total annual cost of hardware, including support and repairs. Complete Table B
Hardware (Complete Table B)
The cost of interfaces to hospitals, ordering physicians, or enterprises
Interfaces
 
The total annual cost of software, including support and repairs. Complete Table C
Software (Complete Table C)
The total cost of training, user manuals etc. to implement the billing solution
Implementation 
 
The total annual cost of staff. include part-time and full-time employees involved in billing, calculated by adding the FTE of part-time employees (part-time hours worked weekly divided by 40) – including prorated hours for senior managers – to the number of full-time employees dedicated to billing and collection activities.
Staff + Benefits (Complete Table D1 and D2)
The cost of all required customization
Customization 
 
Other annual costs
Other Fees (Complete Table E)
Sub-Total  
Special consideration costs
Special Consideration Fees (Complete Table F)
      Sub-total
Table 2 - Annual Fixed Costs      
The annual building rent or depreciation
Building Rent/Depreciation
 
Annual cost of electricity and heating/cooling
Electricity, heating, cooling
     
A Component of Business Insurance to indemnify your practice for billing errors
Errors and Omission Insurance
     
Annual cleaning costs
Cleaning
     
Sub-Total      
         
 
Table A - Supplies   Table B  - Hardware
Annual cost of postage
Postage
 
Annual cost of electronic data storage
Redundancy Data Center, Back-up, Storage, Etc.
Annual cost of these paper supplies
Statements/1500/Receipts
 
Cost of new servers
Server
Annual cost to store paper billing records
Storage
 
Cost of new printers
Printers/Toner
Annual cost of refund checks
Envelopes
 
New PCs/laptops
User Stations
Annual cost of coding books
Coding Books
 
Annual repair/maintenance
Repairs/Maintenance
Sub-Total   Sub-Total
     
Table C - Software   Table D1 - FTE Billing Staff  Current # FTE  Annual Compensation
The total annual fees paid to your billing solution vendor for support, credentialing etc.
Vendor Maintenance Fee
 
Annual salary for IT Support of billing
IT Staff Who Support Billing
External support of billing hardware
External Support
 
Annual salary for payor relations/contracting staff
Payor Relations/Contracting
Annual cost of computer assisted coding
Computer Assisted Coding
 
Annual salary for billing management
Billing Management
Credentialing/Managed Care  
Annual salary for non-coding billing staff
Billing Staff - Non-Coding
Analytics and Reporting    Financial Analyst
Annual cost of malware/intrusion/security software
Malware/intrusion
 
Annual salary for coding staff
Coding Staff
Annual cost to provide and maintain a patient payment portal
Patient Portal
 
Annual salary for finance staff who support billing
Accounting Staff Focused on Billing
Annual cost for a telephone management system
Phone Queue Management
  Sub-Total
Annual expense for add-on eligibility software, if not included in billing solution
Eligibility
 
Sub-Total   Table E - Other Fees
     
The total annual fees paid to a clearinghouse or other vendor for electronic claims, eligibility and claim inquiries
Clearinghouse Fees
Table D2 - Staff  
Annual fess associated with a statement mailing service
Total Statement Mailing Fees
Sub-Total from D1
Staff (Subtotal from Table D1)
 
Bank/Lockbox fees
Bank/Lockbox Fees
Temporary Staff  
Credit card fees
Credit Card Fees
HR & Recruiting  
Cost of HIPAA/Security Audits
Audits: HIPAA/Security
Total annual benefits for staff listed in Table D1
Benefits
 
Cost for revenue audits and billing integrity audits
Audits: Revenue and Billing Integrity
Total annual payroll taxes for staff listed in Table D1
Payroll Taxes
 
Annual Bad Debt write-offs
Bad Debt
Sub-Total  
Collection agency fees
Collection Agency
     
Software upgrades
Software Upgrades
Table F - Special Considerations  
Costs for new interfaces. Minimized with an Interoperabile solution
New Interfaces
Costs associated with defining and providing value to partners
Value-based Reimbursement
 
Billing staff education and associated travel expenses
Education + Travel
Costs associated responding to payor requirement changes
Payor Requirements
 
Annual expense for association memberships, certification etc.
Organization Membership
Costs of implementing classification changes such as ICD-XX
Coding & Classification Updates (e.g., ICD-XX)
  Sub-Total
Annual cost of "temporary" reimbursement interruptions, e.g. Sequestration
Sequestration
 
Cost of providing improperly ordered exams, usually denied by payor
Medical Necessity Denials
 
Costs of improving dictation
Referral-based practice information gathering
 
Annual cost of under-reported bad debts, i.e. bad debts mis-reported as contractual adjustments
Deflated Bad Debt
 
Sub-Total