Assignment Task: Cost/Benefit Analysis
Assignment Objectives: Meet CAHIIM Curriculum requirement for Bachelor Degree Domain VI. Leadership Sub domain VI.G. Financial Management
Perform cost-benefit analysis for resource planning and allocation Competencies: Cost/benefit analysis o Outsourcing, acquisition
Assignment Purpose: Resource planning and allocation Assignment Description Because there is a shortage of coders in your area, you have had a hard time recruiting coders.
You are considering outsourcing the coding services. You have the responsibility of making the decision. Based on the information that has been collected. You have to decide which option is the most cost-effective.
Attached is a spreadsheet which contains the coding services annual budget. You have contacted two outsource coding companies. Based on the information that you provided the outsourcing companies on the number of discharges per year, this is the proposal the companies have provided.
Company A will provide a Director, three inpatient coders, three outpatient coders and a clerical staff person at the rate of $75.00 an hour (2080 hours a year) per person. DRG reviews are not included.
There is a 48 hour turn-around time. Company B will provide four inpatient coders and four outpatient coders at the rate of $85.00 an hour (2080 hours a year) per coder. The Director/supervisor and DRG reviews are provided by the company and included in the cost of the coder. Company B does not provide clerical support.
There is a 24 hour turn-around time. Develop a memo to the CEO which outlines your decision for the coding services department and justifies your decision. Include any other factors that may need to be taken into consideration.
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Attachment:- Cost-Benefit Analysis.rar