Cost Comparison


Cost is a deciding factor in deciding whether to perform billing and collection functions in-house or outsource them. For purposes of clarity, here is a side-by-side comparison of the cost associated with each.

As this comparison clearly shows, the savings using PRS vs. in-house billing are significant with total savings per year of $62,115.20.



Financial Impact PRS

In-House Billing

Financial Impact In-House Billing


Practice does not require
additional staff for billing or collection purposes


Minimum 1 1/2 trained and experienced billing staff is required, whose sole responsibility is billing and    collections

Experienced and trained billing staff is on low
end $12.50/hr (plus benefits. For 1 1/2 position
= $43,000

Computer System



Standard system for electronic
claims submission, claim printing, statement printing, and standard reporting capabilities is minimum requirement.

Hardware requirements for 3 stations, server, printer, modem extra cabling are approx. $9,500. Software such as Medical Manager with appro­priate set up valued at $15,000, plus yearly

    contract, clearinghouse fees, maintenance
contract add $9,000 equals yearly $33, 500


Superbills and daily reconciliation of deposits

For a practice seeing 30 patients per day the printer cost would be about $1,200 ($150 for 1,000 Superbills). For copies the total yearly cost is only $24. Total

Cost = $1,224

Statements, secondary and occasionally primary claims, patient communication, multiple statements
require stamps, paper, envelopes,
time for stuffing and mailing.
Additional supplies are required to
store EOBs

Assuming a total cost for each mailing of $0.52and an average of 2 statements per patient, plus secondary claims, total mailing related cost is $6,489.60.
Storage cost are valued at about $100, making the total cost per year $6, 589.60


Calls to PRS may be necessary to inquire about particular

Experience shows an average of 3 calls per week, making the yearly cost a total of $10.40

Collection work to insurances on the phone is absolutely necessary.

For appropriate collection activity the phone cost would be about $200/month or $2,400/year. In addition, cost for high speed internet connection or upload times for claims easily add
up to $80/month ($960/year), resulting in a total
of $6, 589.60

Other Charges

PRS charges as a % of actual revenue, making billing expenses a flexible cost rather than fix, thereby helping the
practice's cash flow.

Assuming an average
revenue of $55,000 per month for the practice, which is common with
our clients at a negotiated rate of 7% the total
cost for the year would be $39,600

Hidden charges are the loss of income from space taken up by billing related activities rather than revenue
generating activities (for example, the 300 sq ft billing office incl. storage could easily be used for an additional treatment room, an EKG,
Echo, etc. equipment room. Other hidden costs are staff training, continuous education, turnover loss, office furniture.

Not calculating income that could be generated
the savings on rent would be about $1,500 for 300 sq ft.
Losses generated because of turnover, inappropriately trained staff, sickness, incompetence and such are frequently undervalued but realistically run yearly $15,000. Hidden costs easily average total of $16, 500 per year

Total Cost