Developed and maintained by ProWorkstack · Development and review process
Estimate billing administration time and compare in-house effort with an entered service-fee scenario.
Your results
Enter your inputs and select Calculate.
How this calculator works
Hours = billing items × (routine minutes + rework fraction × extra rework minutes) ÷ 60. Current time value = hours × hourly cost. Proposed cost = collections × service fee fraction + retained administration cost. Difference = current − proposed.Worked example
One hundred sixty items at six routine minutes plus 10% at 15 extra minutes take 20 hours. At 30 per hour, current time value is 600. A 6% fee on 12,000 collections plus 100 retained administration is 820, so the comparison is negative 220.Assumptions
Defaults are illustrative. Replace them with your own measured quantities and documented assumptions. Use matching periods and a consistent currency wherever monetary amounts are entered.Interpreting your results
This does not connect to billing systems or evaluate insurance coverage or clinical services. The service scenario assumes unchanged collections and billing quality. Time value is not necessarily cash saved when an owner continues doing the work.Calculation formulas
- hours
claims*(minutes+rework/100*extra)/60- current
hours*rate- proposed
revenue*service/100+retained- Current cost minus billing service cost
current-proposed- Current billing admin hours per month
hours- Value of current admin time
current- Estimated billing service cost
proposed
Frequently asked questions
What should I check before using the result?
Time claim preparation, payment posting and follow-up on a representative sample. Extra rework minutes should exclude the routine minutes already counted, or the same effort will be priced twice.
Does this tool connect to my records?
No. This is a local calculation from the figures you enter. It does not scan accounts, import private records or verify legal, regulatory or exam requirements.
Maintained by ProWorkstack · Last reviewed: 2026-10-04 · Development and review process