FTE Calculation

Hello Managers,

This is the ROI formula.

ROI = WRS Monthly Invoice / Total Expense

Example: Practice A

• July Ins Posting = $50,000
• WRS Invoice = $3,000 (6%)
• Total Expense = $2,000 [Rep+Mgr+PatientBilling ($1650+ $200+$150)]

Expense breakdown:

Rep = $1650 (1 FT = $800 estimate)

Mgr = $200 (estimate constant)

PatientBilling = $150 (estimate constant)

ROI = 3,000 / 2,000

ROI = 1.5 The ROI for Practice A is low because the expense is high.

FTE = Total Rep Expense / 1 FT >>> $1,650 / $800 = 2.06

FTE = 2.06 (2 full-time reps assigned in Practice A)

Here are things to consider to improve your ROI:

1. Total claim volume/charges = Total posting/revenue

2. Number of reps assigned to a site (FTE)

3. Total hours logged in the site

4. Workload

Sample Analysis for Practice A - Do we need 2 reps to work in Practice A?

1. Total claim volume/charges = Total posting/revenue >>> Claims 500 claims @ $250 each / $125,000 monthly charge amount = $50,000 projected insurance posting @ 40% allowable.

2. Number of reps assigned to a site = 2 FTE

3. Total hours logged in the site = 16.5 hours per week

4. Workload = Rep 1 (Claims and Rejections only); Rep 2 (Posting and AR only)

If this practice bills only 500 claims in a month (500 X 5 minutes maximum per claim with eligibility or appointment search check = 42 hrs monthly)

This means the 1 FT can spend 2 hours creating claims daily and allocate 6 hours to do the rest of the task.

Conclusion: Reducing FTE from 2 to 1 will increase your ROI from 1.5 to 2.6.

Please note that the calculation above is just an example and may not be applicable to all practices.

Reference:

1 work month = 20 days or 160 hours

1 work week = 5 days or 40 hours

1 workday = 8 hours