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Answering To Your CFO

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					Answering To Your CFO
   Knowing Your True Costs

      Presented By Monica Haddox
     What will be covered in this
           Webinar?


     A: Finding your true costs and
 Part
 projecting need

 PartB: Measuring your cost projection
 vs. your actual costs
             Where do I start?
   Create a team

   Know your history

   Brainstorm

   Create a system of measurement

   Test your system
           What are costs?
-  Human Capital
 - Outsourcing of any kind
 - Supplies and Materials
 - Technology


 ANYTHING    that takes money or time is a
                    Cost!
       Have you seen this look?
   CFOs have to answer
    to someone, too!

   Being within budget
    gives you bargaining
    power!

   Having a plan allows
    everyone to relax!
  How can you project the future
            need?

 Lookat the business plan for the future of
 the hospital/MTSO
     Align your goals with the overall goals of the
      facility
     Identify the role your department plays in the
      business plan
     Address the needs of the business plan vs.
      your current resources to project potential
      future costs within your department
              Business 101
 SWOT    analysis
    Strengths
    Weaknesses
    Opportunities
    Threats


 How   can this help me find my costs?
       Obstacles in the “Road”.
   Unplanned costs can
    be crippling

   Budgetary cuts an be
    unplanned

   Changes are
    inevitable!
         Is it time to choose New
                 Technology?
 How   much does the tech cost?

 Interfaces   or other cost when switching?

 How   long will switch take?

 What   is the game plan in the mean time?
      Managing the Work- Being the
              Outsource

 Managing work- what to do with new
 accounts and how to budget
     Costs of overhead
     Payroll
     Training
     Other client needs that are your
      responsibility?
                    Outsourcing
 Negotiate,    negotiate, negotiate!

 Create   a solid contract

 Have definitive terms and limits on
 contracts

 Be   realistic!
 What is the largest piece of your
        “budgetary Pie”?

 Human   Capital, or

 Technology?
               Human Capital
 Howmuch can you expect from your
 employees?
    Do you have a clear job description for your
     employees?
    Do you measure their performance?
    Does their job create overhead, or cost
     savings
      • Is the overhead necessary
      • What is the actual cost savings vs. cost of
        employee?
      Employee vs. Contractor
 How   much do your employees cost?
    Do you provide health insurance?
    401K?
    Other employee benefits? Cafeteria
     privileges, PTO, vacation time, expenses?

 Calculate all benefits into the current pay of
  your employees and that is the total cost of
  the FTE (full-time employee)
                 For instance….
   Pay per hour- $11.00 x 40 hours= $440
   401K cost- 4% of $440= $17.60
   PTO accrual per week- 1 hour= $11
   Health Insurance- $250/4= $62.50
   Federal/Unemployment taxes- $52.80

   Total per week= $583.90
   Per year before benefits= $22,880
   Per year after benefits= $30, 363
       A difference of $7483 per year, per employee
             Contractor Costs
 How much does your contractor actually
 cost?
    How are they paid? Cents per line? Flat rate?
    Do they need support from your staff?
      • How much time does your staff take to
        accommodate contractor needs?
      • Can you streamline the process with automated
        processes, training or information?
      • Do their services require you to pay extra
        technology fees?
           Another for instance…
   Contractor pay is 10 cents per line and reports
    are generally 5 minutes long
       12 lines per minute x 5 minutes x .10= $6.00

    Technology costs 2 cents per line= $1.20
    Total report cost by contractor = $7.20

    Does your staff have to handle the report after the
     document is returned? How long does it take the staff
     member per document? Add this to the total cost of
     the document
    Technology: Help or Hinder?
   Does your technology address your needs?

   Do you have to perform other tasks outside of your
    technology that you feel should be addressed by your
    technology?

   Good rule of thumb: If you have a repetitive task that
    can be addressed by technology, you should find a
    program or as your IT department to help you create a
    program to address your needs!

   Don’t forget, time is money and technology should be
    helping you make money- not costing you time or money
        Reporting Capabilities
 Do   you have the reports that you need?

 Areyou using your technology to its fullest
 potential? Ask your vendor!

 Howdo you request upgrades from your
 vendor? How do they notify you of
 upgrades?
           Controlling Costs
 Howcan you control rising costs, but still
 engage your employees?

    Promotion from within
    Training
    Non-monetary incentives
       Controlling Costs Cont.
 How do you get the most from your
 outsourced contracts?

    Contractual obligations
    Training period- how long is too long?
    Plan with your contractors- establish
     communication
                More Costs!
 Technology-    how can you cut costs?

     Do you have annual contracts or costs
      associated with technology?
     Do you have maintenance fees with your
      current contract?
     Can you find another program without the
      costs?
           Food for thought…
 Other   business expenses

     1. Marketing
     2. Advertising
     3. Working Business expenses
     4. Recruiting
     5. IT
     6. Other
          What about Growth?

 What    do you need to approach your CFO?
     A strong and realistic plan
     Accurate numbers and costs from a reliable
      source
     Good communication
     Time frames and landmark goals
     Proof of ROI (return on investment)
 Reverse engineering your budget
      to find your true costs
 Cost   of transcription-
     Costs of personnel
     Technology
     Outsourcing
     Quality review
     Training
     Other transcription related costs such as
      hardware, etc.
                            To review…
   Employee Costs Per line of               Contractor Costs per line of
    transcription-                            transcription-

   Pay per hour- $11.00 x 40 hours=         Contractor pay is 10 cents per line and
    $440                                      reports are generally 5 minutes long
   401K cost- 4% of $440= $17.60                12 lines per minute x 5 minutes x
   PTO accrual per week- 1 hour= $11             .10= $6.00
   Health Insurance- $250/4= $62.50
   Federal/Unemployment taxes- $52.80         Technology costs 2 cents per line=
                                                  $1.20
   Total per week= $583.90                    Total report cost by contractor =
                                                  $7.20
   Per year before benefits= $22,880
   Per year after benefits= $30, 363
                                               Does your staff have to handle the
       A difference of $7483 per year,          report after the document is
        per employee                             returned? How long does it take
                                                 the staff member per document?
                                                 Add this to the total cost of the
                                                 document
    Reverse engineering continued
   Total budgetary costs per annum
       Total from last year, or
       Projected costs
       Add projected need and growth
       Don’t forget things like raises, technology, and
        training
       Keep an eye on the Business plan
       Monitor spending
       Allow for changes and increases in your budget
               Thank You!
 Questions??


 Have   a wonderful day!

				
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