Question 1

10 Points

Your organization is considering outsourcing all of its coding services. Currently, coding staff use the 3M encoder and a computer assisted coding program. The first step is to issue a request for proposal (RFP).

Based on the above, evaluate the following results from your request for information and decide which three vendors to contact for a request for proposal.

I would first issue a request for outsourcing all the coding services which currently the coding employees uses the 3M encoder and computer assisted program. I would choose vendors 1, 4 and 5.

Question 2

10 Points

Now determine eight items that should be included in the request for proposal that will be distributed. (Additional information can be found in textbook on page 403).

I would include the following eight items: pricing, instructions for vendors, Criteria report to be evaluated, vendor proposals, facilities size, departmental objectives, and vendor qualifications.

Question 3

10 Points

Assume that you want to go with Vendor 1 after the RFPs are evaluated. Now you

must perform a cost-benefit analysis to see if it is feasible to entirely outsource. Their

pricing structure is $5 per inpatient chart, $3 per outpatient chart, $1.75 for each ER,

and $1 per ancillary account. Base your calculations on the average daily accounts for

each patient type listed below. Put the cost per year as answer. YOU MUST COMPLETE THIS USING EXCEL WITH FORMULAS.

Inpatient 70

Outpatient 75

Emergency Room 185

Ancillary 360

Question 4

10 Points

Now calculate your coding budget for next year. All full-time staff will be getting a 2.5% raise; part-time staff will be getting 1%. In addition, you must also account for the fringe benefit costs associated with the coding staff which are 32% of their salary.

Coder Current rate This years salary Raise Next years salary

Inpatient Coder 1 FTE 24.00 per hr.

Inpatient Coder 2 FTE 22.50 per hr.

Inpatient Coder 3 FTE 21.85 per hr.

Outpatient Coder 1 FTE 19.75 per hr.

Outpatient Coder 2 FTE 19.75 per hr.

ER Coder 1 FTE 18.25 per hr.

ER Coder 2 PT 18.25 per hr.

Ancillary Coder 1 FTE 17.50 per hr.

Ancillary Coder 2 PT 17.50 per hr.

Question 5

2.5 Points

Is it cost effective to consider outsourcing coding based on the results from the previous question?

Question 6

2.5 Points

Based on the case study what would the outcome be if you considered Vendor 5 at $30.00 per hour?