Most diagnostic providers readily recognize a few key elements as billing costs, including billing staff and billing software license fees, or outsource billing service fees. But they fail to accurately capture all the associated costs—line items like software maintenance, cost of reporting and business intelligence add-ons, hardware costs, etc. In fact, labs routinely underestimate billing by a factor of four or more.
When assessing billing solutions and options, many organizations fail to take into account all the various elements that comprise the organization’s true cost of billing. Instead, focus is on a few well-known line items. Laboratories, radiology groups and medical device organizations often try to improve their billing performance by reducing the cost of these individual components, without recognizing their true cost may be much higher and that there are other, more effective, means to achieving a lower cost of billing. This excessive focus on individual components comes at the expense of the bottom line, and can lead to a significantly poorer financial picture and inferior accounts receivable performance.
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Download the white paper, "A CEO's Guide to Total Cost of Billing" to learn about the key elements in total cost of billing:
When total billing costs are accurately evaluated, laboratories, radiology groups, and medical device companies can benchmark themselves against industry averages. XIFIN clients typically see a total cost of billing that is half as much as industry averages.
For CEOs, an optimized billing solution is one that maximizes cash and revenue while keeping the total cost of billing low. To best assess its billing options, a laboratory needs to understand its true total cost of billing, measured as a percent of revenue. It is important to recognize that total cost is affected by hidden costs and system inefficiencies that inflate manpower requirements and reduce cash and revenue, and that an inaccurate picture of billing costs often leads to false economies. It is easy to be seduced by inexpensive software that is actually the more expensive solution. Understanding the total cost of billing, measured as a percent of revenues, is your best means of avoiding this trap.