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Estimate billing administration time and compare in-house effort with an entered service-fee scenario.
Measure routine work and rework separately
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.
How the calculation 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.
A 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.
Read what a service quote includes
Collections-based fees may omit patient statements, denied-claim follow-up or older balances. Include work that remains in the retained cost. Do not assume outsourcing increases collections without separate evidence.
What the result leaves out
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.
Open the calculator with your own figures →
The defaults are constructed examples, not market benchmarks. Choose one currency for every monetary input; the currency selector formats values and does not convert exchange rates. Keep a copy of the records and assumptions behind your result so you can repeat the comparison after the next reporting period.
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Prepared by ProWorkstack. Our editorial standards explain how we handle examples, limitations and corrections.