Final Project
Your Hospital has decided to outsource transcription.
1. Complete a one-three page request for proposal that will be sent to all the prospective transcription vendors. (All proposals to the hospital must have an all-inclusive per line cost, guarantee 100% domestic transcription, guarantee turnaround times {TAT} as specified by the hospital - 24 hrs. for all work types with 6 hr. TAT for stats, and supply the hospital a monthly itemized bill for every job type) (Use chapter 10 and research additional sources in the AHIMA body of knowledge)
Currently, the transcription department is made up of 14 full time transcriptionists each earning $34,000 a year in salary, 2 part time transcriptionists each earning $15,000 per year, and 1 lead transcriptionist earning $40,000 a year. The hospital also pays $10,000 a year in annual maintenance fees, and other costs to keep up the old dictation system operating.
- Salaries listed above do not include the cost of benefits
- Only full time employees receive benefits and benefits which are 29% of the employee's salary
- Current volume is 5 million annual lines (based on 65 character line)
You must choose between the firms below.
Firm A - offers an all-inclusive rate of $0.12 a line
Firm B - offers an all-inclusive rate of $0.14 a line for straight transcription, or $0.10 a line if the provider qualifies for back-end[1] speech recognition (you can expect 25% of the overall transcription volume to qualify for speech recognition the first year {1.25 million lines} and 60% the second year {3 million lines}) - calculate the costs as a mix of the 2 transcription options
*Assume both options comply 100% with your RFP requirements.
2. Create a power point presentation to management comparing the projected costs only (don't include any savings or positive cash flows) for each option Firm A and B over the next 5 years (include NPV calculation for each Firm see unit 3 assignment 1) - the risk free rate of return on invested hospital funds is 5%
3. Next, prepare a proforma comparing the 2015 costs with the 2016 projected costs for the firm you choose, include the following options. (use Unit 3, assignment 2 for reference) include Salary, benefits, outsourcing costs, maintenance, etc.
4. Finally, Draft a one page memo to the CFO. Indicate which option you recommend and why. Assume that both firms are equal in every way except for cost. (Use unit 3 assignments as reference)
Please feel free to do additional research using other sources including the AHIMA body of knowledge especially for task 1.
Each portion of the assignment should be a separate document (word, excel, or power point).