Statistics

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 recording. 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.
a) What is the rate of claims that are currently being returned for recording?
b) How many claims would be returned after the installation of the software?
c) if the clinic eliminated the two FTEs that handle the returned claims, what saving would it realize after installation of the software?
d) what is the payback period?
e) what is the return on investment?

  1. 👍 0
  2. 👎 0
  3. 👁 417
  1. 72.44%

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Linear Programming - Math

    A small software company publishes computer games and educational and utility software. Their business strategy is to market a total of 36 new programs each year, at least four of these being games. The number of utility programs

  2. medical coding

    Gladys Swain slipped from a sidewalk curb and twisted her right ankle. Because of the severe pain she was suffering and the inability to bear weight on the foot, she sought treatment at her neighborhood hospital emergency

  3. statistics

    The HIM department at community hospital will experience a 15 percent increase in the number of discharges coded per day as a result of opening a cardic clinic in the facility. The 15 percent increase is projected to be 100

  4. MEDICAL CODING

    Use the CPT, ICD-9-CM, and ICD-10-CM manuals to assign the appropriate Emergency department visit, procedure, modifier, and diagnoses codes to the following case scenario. 1. Use the CPT, ICD-9-CM, and ICD-10-CM Manuals to assign

  1. stats

    The coding department of Community Physician’s Clinic is interested in purchasing a software program that will edit claims before they are sent to the Billing Office. The license fee for the software is $60,000 per year. The

  2. consumer math

    John Tucker is interested in purchasing stock. He wants to determine the costs.

  3. Statistics

    community physicians clinic is a large clinic with 85 physicians. they treat about 8,600 patients each week. coders are expected to code 100 clinic records each day. how many Full Time Employees are needed to code these records? (

  4. College Algebra

    Value of Computer Software The value V, in dollars, of a shopkeeper's inventory is software program is given by V=-50t + 300, where t is the number of years since the shopkeeper first bought the program. SHOW YOUR WORK for a and

  1. Health Care/Medical Coding

    How are medical coding, physician, and payer feees related to the compliance process?

  2. prealgebra

    the value, v, of a shopkeepers inventory software program is given by v= -(1)/(2)t+5 where t is the number of years since the shopkeeper bought the program. What is the program worth 4 years after its first year purchased? Plot

  3. COM 135

    Prewriting,writing, ReWriting are 3 main steps in the technical writing process. Read the following scenario: As a customer service manager for a local software development company, you want to create a user manual for one of the

  4. consumer math

    John Tucker is interested in purchasing stock. He wants to determine the costs.

You can view more similar questions or ask a new question.