Dear Sue,

I need your help concerning the below questions.
Thank you.

The coding department of a large physician clinic is interested in purchasing a software program that will edit claims before they are sent out to billing. The license fee for the software costs $34,000 per year. The software is expected to reduce the number of errors on claims and thus reduce the number of claims returned to the clinic for recording. Currently the department codes 24,000 physician visits per month and 250 claims are returned each month for recoding. The facility pays two FTEs in the business office $9.50 per hour each to refile the returned claims. The software company promises that its software will reduce the number of returned claims by 90 percent. What is the rate of claims that are currently being returned for recoding?

To find the rate of claims that are currently being returned for recoding, we need to divide the number of claims returned by the total number of claims coded.

First, let's calculate the total number of claims coded per year:
Total claims per year = claims per month * months in a year
Total claims per year = 24,000 * 12
Total claims per year = 288,000

Next, we can calculate the number of claims currently being returned for recoding per year:
Claims returned for recoding per year = claims returned per month * months in a year
Claims returned for recoding per year = 250 * 12
Claims returned for recoding per year = 3,000

Finally, we can calculate the rate of claims that are currently being returned for recoding:
Rate of claims returned for recoding = (Claims returned for recoding per year / Total claims per year) * 100
Rate of claims returned for recoding = (3,000 / 288,000) * 100
Rate of claims returned for recoding ≈ 1.04%

Therefore, the rate of claims that are currently being returned for recoding is approximately 1.04%.