MEDICAL TRANSCRIPTION COMPARISION OF COST SAVING & OTHER BENEFITS MASSACHUSETTS :

MASSACHUSETTS

COMPARISION OF COST SAVING & MONETARY BENIFITS

IN-HOUSE vs OUTSOURCING

COSTS	IN-HOUSES		OUTSOURCE
HOURLY WAGES @ $18.94*	ANNUAL COST	39400.00	NIL COSTS
BENIFIT EXPENSES @ 5% OF WAGES		1970.00
PAYROLL TAXES @ 2% OF WAGES		788.00
SICK/VACATION ALLOWANCE 10 DAYS		1515.20
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	52623.20

  

Annual Operational Expenses	52623.20		We charge 8 cents a line as against your in-house cost of 0.25 cents, you save a massive 68%.
Less Equipment & Software Cost	01,450.50
	51,173.20
Add 33% Depreciation on Equipment Cost	00,478.50
Net Annual Operational Cost	51651.70
Break up: Annual operational cost per week @ $51,65.70 / 52 weeks	993.31
Annual Operational Cost In-House
Operational Cost a Week	993.31
Transcribed Lines a Week	4000
		0.25cents
YOUR BENEFIT 68% ONCOST & MONETARY SAVINGS

YOU BENEFIT 68% ON COST & OTHER SAVINGS

The in-house operational expense for medical transcriptions could cost a hospital or a healthcare provider in MASSACHUSETTS an approximate US $.51,652 annually.

IN-HOUSE LABOUR COSTS: The major part of the expense incurred, is the wages paid to a medical transcriber, costing the company US $.39,400 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 $.43,673 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 MASSACHUSETS can be roughly assumed to be US$ 51652 or more annually, and for the sake 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 $. 51652 by 52 weeks of a calendar year, which will work out to US $ 993 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 $ 0.25 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 MASSACHUSETS will save a mammoth 64% of costs by outsourcing the medical transcription requirements of the hospital to us.

MedicalTranscriptionsService - California Medical Transcription Company