MEDICAL TRANSCRIPTION OUTSOURCING BENEFITS IOWA:   

The in-house operational expense for medical transcriptions could cost a hospital or a healthcare provider in IOWA an approximate US $.39, 702.20 annually.

IOWA
COMPARISION OF COST SAVING & MONETARY BENIFITS
IN-HOUSE vs OUTSOURCING
COSTSIN-HOUSESOUTSOURCE
HOURLY WAGES @ $13.76* ANNUAL COST 28,620.00 NIL COSTS
BENIFIT EXPENSES @ 5% OF WAGES 1431.00
PAYROLL TAXES @ 2% OF WAGES 572.40
SICK/VACATION ALLOWANCE 10 DAYS 1100.80
OFFICE RENT @ $250 MONTH 3000.00
TECH.SUPPORT @ $50 PER MONTH 600.00
OFFICE EXPENSES @ $200 PER MONTH 2400.00
MISCELLINOUS EXP.@ $100 A MONTH 1200.00
WORKMANS COMP EXPENSES FIXED COST 750.00
DICTATION/T'CRIPTION EQP.COSTS 450.00
EMPLOYEE TRAINING EXPENSES 300.00
MISCELLINOUS SOFTWARE 250.00
ANNUAL OPERATIONAL EXPENSES TOTAL 40674.20

NOTE:
(*Hourly wages for IOWA STATE based on Statistics as provided by US Dept of Labor)

Annual Operational Expenses 40674.20 We charge 8 cents a line as against your in-house cost of 0.19 cents, you save a massive 58%.
Less Equipment & Software Cost 01,450.50
39223.70
Add 33% Depreciation on Equipment Cost 00,478.50
Net Annual Operational Cost 39702.20
Break up: Annual operational cost per week @ $39,702.20 / 52 weeks 763.50
Annual Operational Cost In-House
Operational Cost a Week 763.50
Transcribed Lines a Week 4000
0.19cents
YOUR BENEFIT 58% ONCOST & MONETARY SAVINGS

IN-HOUSE LABOUR COSTS :

The major part of the expense incurred, is the wages paid to a medical transcriber, costing the company US $.28, 620 annually, add to that the other costs in the form of benefit expenses of 5%, the payroll taxes of 2% on the wages, and the sick/ vacation allowances that will add to the total cost of  US $.31, 723.40 annually.

IN-HOUSE EQUIPMENT COSTS:

The investment into equipment such as the workman’s computer, dictation and transcription equipment and miscellaneous software will cost another US $.1450, and assuming that such equipment will serve the company for the next three years, the depreciation value of 33% or US $ 478.50 will have to be added to the operational cost annually.

IN-HOUSE ‘OTHER’ COSTS:

The other add on expenditures are in the form of monthly office rentals, employees training expense on software’s installed, fees paid to the technical experts for maintenance of  computers and transcription equipment, and finally the cost of stationary and other miscellaneous expenditure costing a total US.$ 7500 annually.

IN-HOUSE ANNUAL EXPENDITURE :

Thus the estimated total expenditure, that will cost a hospital or a health care provider in operating an in- house medical transcription process in a state like IOWA can be roughly assumed to be $ 40,674.20 or more annually, and for the purpose of trying to analyze the cost that an in-house transcription process may incur for transcribing a single line of a Medical record, let us first split the annual expenditure of  US $ 40,674.20 / 52weeks  of a calendar year, which will work out to US $ 763.50  a week, and if one considers that a medical transcriber is able to transcribe 4000 lines of medical records a week, a simple math calculation will tell us that a single line of transcription can cost an in-house medical transcription process $ 0.19 cents, and when you compare that to the $ 0.08cents we charge for a single line of transcription, a hospital or a healthcare provider in IOWA will save a mammoth 58% of costs by outsourcing the medical transcription requirements of the hospital to us.