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. 👁 404
  1. 12

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. 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

  2. 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

  3. 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

  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. 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

  2. Medical Coding

    What are the CPT and ICD codes for this case? 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

  3. In

    ABC Company – Training Program ABC Company has 50,000 employees in its headquarters. The company wants to increase employee productivity by setting up an internal software applications training program for its employees. The

  4. Statistics

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

  1. consumer math

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

  2. accounting

    Your department’s account software is extremely outdated and you have included the purchase of new software int his year’s fiscal budget. You have decided it is time to start looking into purchasing your company’s accounting

  3. Medical Billing and Coding

    Had to develop a paragraph using clear, varied sentences containing concrete words and transitions or connectives to create a logical flow. Need assistance in the following paragraph that describes on particular experience I had

  4. Health Care/Medical Coding

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

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