FTE Model 101 Balancing Resource Capacity And Demand.pdf

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Undoubtedly, doctors and nurses are your hospital’s most valuable
asset, and so are the medical billers and coders. With them, you could
bill your services accurately and timely and
generate revenue. However, they are also your hospital’s most expensive
cost. If you don’t keep them busy and reap maximum benefits, they’ll eat
away at your profits. You need enough medical billers and coders to
capitalize on your opportunities, but only a few of them to sit on the
bench. The conflict between hiring and firing is one of the most
substantial and unresolved in running a successful healthcare
organization. The resource capacity vs. demand equation must be
solved to stay profitable and submit claims timely. The best way is to
utilize the full-time equivalent model, i.e., the FTE model. Let’s have a
deep dive into how to maintain such a balance between resource
capacity and demand:

Resource Capacity
Any employee’s (medical billers and coders) capacity is the total number
of standard hours an individual is available to work under the terms of
the agreement. Hours, FTE (Full Time Equivalent), person days, people,
and other units of resource capacity can be used.
Resource Demand
The process of calculating the resources needed to meet the demand
for various billing and coding tasks is known as resource demand. The
unit of demand for resources is measured in
hours, FTE, person days, and so on.
Also Read: Full-Time Equivalent (FTE) Model

Let’s begin with Calculations!
Some factors to consider when measuring people’s capacity are:
● Any full-time or part-time employees who are available.
● Contractors or temporary employees are available.
● Any planned leaves of absence or contract terminations.
The next step is to compute the resource demand. The resource
demand includes the resources needed to complete the hospital’s
various billing tasks (including coding). Demand is typically measured in
terms of hours, FTE, or personal days. If a full-time employee works 40
hours per week and the billing requires 56 hours per week, the FTE for
the project is 1.4.
Also Read: Full-Time Equivalent (FTE) Model

A lack of proper resource planning can erode your doctor’s and
physician’s efforts and eventually lead to zero or no reimbursements.
Here is a step-by-step breakdown of how it can
derail reimbursements:
● Poor planning will result in overworking and overscheduling the in-
house billers and
coders with conflicting priorities, eventually leading to exhaustion and
burnout.
● When in-house team members are overworked and overscheduled,
their morale
suffers.
● With low morale, such team members cannot give their 100% in billing
and coding work, leading to an endless rework cycle on claims
submission.
● All this will enhance the time and cost for healthcare organizations,
with a high risk of denials or rejections of claims.

HTTPS://WWW.247MEDICALBILLINGSERVICES.COM/
We are a medical billing company that offers ‘24/7 Medical Billing
Services’ and support physicians, hospitals, medical institutions and
group practices with our end to end medical billing solutions. We help
you earn more revenue with our quick and affordable services. Our
customized Revenue Cycle Management (RCM) solutions allow
physicians to attract additional revenue and reduce administrative
burden or losses.
INFO@247MEDICALBILLINGSERVICES.COM

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FTE Model 101 Balancing Resource Capacity And Demand.pdf

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