Case Study: The HIM Department has recently converted to an Electronic Health Record system. The move to an EHR was a very costly move for the facility. Because all office equipment was replaced during the EHR conversion, there will be no requests taken for major equipment (Zero dollars in the capital budget). Its that time of year again for Directors to create their department Revenue Budgets, Operational Budgets and Personnel Budgets. All Directors must carefully review their budgets for cost effectiveness. Release of Information is currently handled by HIM staff. Transcription is also handled by the department. Your administrator would like you to look into outsourcing all of the transcription, and possibly the Release of Information to see if it could improve productivity, decrease transcription, and save money. In addition, employees will be receiving a 4% pay increase. Personnel budget must also include employee benefit costs for all hourly and salaried employees (PTO and health insurance). As HIM Department director, you must compare the costs as well as justify your decision on why you are or are not making a change, so that it is presented very favorably to get financial support. The department currently consists of the following employees. Their wages are shown: Release of Information $15.75/hour File Clerk $14.25/hour Transcriptionist $18.00/hour Coder $19.25/hour Biller $17.50/hour Director $72,000/year HIM DEPARTMENT BUDGET COVER SHEET (5 pts) DEPARTMENT: Health Information Services FISCAL YEAR: 2019 Overall Budget for Health Information Department. Worksheets attached explain calculations and justifications. Capital Budget _______ Operational Budget _______ Personnel Budget _______ Total Costs _______ Revenue Budget Total Revenue _______ Grand Total: _______ Prepared by: _______________ Date: _____________________ Part I: Revenue Budget Worksheet: The purpose of the revenue budget is to forecast revenue from nonpatient activity. In the Health Information department, revenue is incurred from Release of Information. Currently there is one Release of Information specialists who works full time. She makes $15.75/hour (plus 22% for benefits). Below is a list of types of releases (along with average number of releases per day, and average number of pages per release) that this staff member does per day. Who Requests Average # per day # of stat requests Average pgs/request Billable? Patients 7 1 8 No Other doctors 9 2 8 No Internal (docs, nurses) 7 5 2 No Attorneys, Underwriters 4 0 30 yes The current rate for Release of Information is $17.79 retrieval fee plus $1.34 per page. Calculate the revenue earned per year (show your work). Revenue earned per year (52 weeks) for in-house ROI (5 pts): _____________________ In researching copy service companies, you have found that most companies will not only do the billable releases, but they will do ALL the releases for the department (except for STAT releases; those will still have to be handled by a staff member in the office). The department will earn 20% of the revenue received for the billable requests. Calculate the revenue per year if a copy service completed all releases (show your work): Revenue earned per year (52 weeks) for contracted ROI (3 pts): ____________________ Case Study: The HIM Department has recently converted to an Electronic Health Record system. The move to an EHR was a very costly move for the facility. Because all office equipment was replaced during the EHR conversion, there will be no requests taken for major equipment (Zero dollars in the capital budget). Its that time of year again for Directors to create their department Revenue Budgets, Operational Budgets and Personnel Budgets. All Directors must carefully review their budgets for cost effectiveness. Release of Information is currently handled by HIM staff. Transcription is also handled by the department. Your administrator would like you to look into outsourcing all of the transcription, and possibly the Release of Information to see if it could improve productivity, decrease transcription, and save money. In addition, employees will be receiving a 4% pay increase. Personnel budget must also include employee benefit costs for all hourly and salaried employees (PTO and health insurance). As HIM Department director, you must compare the costs as well as justify your decision on why you are or are not making a change, so that it is presented very favorably to get financial support. The department currently consists of the following employees. Their wages are shown: Release of Information $15.75/hour File Clerk $14.25/hour Transcriptionist $18.00/hour Coder $19.25/hour Biller $17.50/hour Director $72,000/year HIM DEPARTMENT BUDGET COVER SHEET (5 pts) DEPARTMENT: Health Information Services FISCAL YEAR: 2019 Overall Budget for Health Information Department. Worksheets attached explain calculations and justifications. Capital Budget _______ Operational Budget _______ Personnel Budget _______ Total Costs _______ Revenue Budget Total Revenue _______ Grand Total: _______ Prepared by: _______________ Date: _____________________ Part I: Revenue Budget Worksheet: The purpose of the revenue budget is to forecast revenue from nonpatient activity. In the Health Information department, revenue is incurred from Release of Information. Currently there is one Release of Information specialists who works full time. She makes $15.75/hour (plus 22% for benefits). Below is a list of types of releases (along with average number of releases per day, and average number of pages per release) that this staff member does per day. Who Requests Average # per day # of stat requests Average pgs/request Billable? Patients 7 1 8 No Other doctors 9 2 8 No Internal (docs, nurses) 7 5 2 No Attorneys, Underwriters 4 0 30 yes The current rate for Release of Information is $17.79 retrieval fee plus $1.34 per page. Calculate the revenue earned per year (show your work). Revenue earned per year (52 weeks) for in-house ROI (5 pts): _____________________ In researching copy service companies, you have found that most companies will not only do the billable releases, but they will do ALL the releases for the department (except for STAT releases; those will still have to be handled by a staff member in the office). The department will earn 20% of the revenue received for the billable requests. Calculate the revenue per year if a copy service completed all releases (show your work): Revenue earned per year (52 weeks) for contracted ROI (3 pts): ____________________