What does it cost your Prescott medical practice to have an employee handling your medical billing? It’s easy to identify wages, but what about the hidden costs? Skyline Medical Billing Management examines the cost of outsourcing to a professional medical billing service vs. hiring an employee.
The true cost of a medical billing employee is much more than just salary. Rising wages range from $13 to $15 per hour, and medical billing employees nationwide often earn $15 or more per hour. While wages are the lion’s share of the expense, there are a number of hidden costs that add up. Consider the following:
Hiring – Smaller practices generally don’t have a human resources person to handle the application and interview process, which means you are likely taking time away from your practice to find employees.
Training – Most employees are not fully productive on their first day of work and it may take weeks or months before a new person settles in at their job.
Payroll taxes – Federal law requires employers to pay FICA (Medicare and Social Security taxes) for their employees. Federal and/or state unemployment taxes are also required.
Workmen’s compensation – Under Arizona law, it is mandatory for employers to secure workers’ compensation insurance for their employees.
Benefits – Health insurance and paid time off, including vacation, sick days and paid holidays are critical to attracting and keeping good employees. With all of these added incentives, a $15 per hour wage rises about 24% to nearly $20 per hour.
Office overhead – Consider the equipment needed to perform job duties: office space, desk, computer, software, technical support, office supplies, insurance, and depreciation on assets.
Skyline Medical Billing Management recommends taking a close look at the hidden costs of hiring an employee to handle your medical billing. We would like to help you manage your Prescott medical practice more efficiently and profitably, and with the confidence that you have a team of professionals working on your behalf. For more information on how we can help, or to schedule a consultation, please call us at 928-227-1167.
