Healthcare Statistics Problems! Please Type, ensure answers are correct, Show st
ID: 3333231 • Letter: H
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Healthcare Statistics Problems!
Please Type, ensure answers are correct, Show steps. Thank you!
e geding department of Community Physician's Clinic is interested in that will edit claims before they are sent to the Billing Office. The satwatfio for the software is $60,000 per year. The software is expected to reduce the eme fee aer of errors on claims and thus reduce the number of claims (denials) returned sumber tothe clinic for recoding. Currently, the department codes 47,00 provider visits per ceth and 500 claims are returned each month for recoding. The facility pays two FTEs in the Billing Office $14.00 per hour each plus 25 percent in benefits to refile be returned claims. The software company promises that its software will reduce the umber of returned claims by 90 percent a What is the rate of claims that are currently being returned for recoding each noeth? Round to two decimal places . How many claims are estimated to be returned after the installation of the software?Explanation / Answer
(a) Rate of claims that are being returned for recoding each month = (500/47600) X 100 = 1.05%
(b) The no. of claims to be returned after the installation of the software = 10% of 500 = 50
(c) 500 claims are re-filed per month by 2 FTE's. No. of hours they work on each re-filing = 1 hour (assume). Their bill is $ 14 per hour, hence the bill is 14 * 500 = 7000 $. 25% bonus means their total bill is $ 8750. After the installation, only 10% work is required = $ 875. So, the savings = $ 7875.
(d) Payback period = 60000 / 7875 = 7.62 months = 7 months and 19 days
(e) Savings - Investment = 7875*12 - 60000 = 34500 $. Return on investment = 34500/60000 X 100 = 57.5 %
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