Allied Healthcare Professional Revenue and ROI Report
INTRODUCTION: A KEY SOURCE OF REVENUE Through the tests they order, the drugs they prescribe, and the range of services they provide, physicians generate bills to third-party payors, including commercial insurance companies and government-subsidized health insurance providers such as Medicare. AMN Healthcare quantified annual billing submitted by physicians to commercial payors in our 2023 Physician Billing Report . This report indicates that physicians bill an annual gross average of $3.8 million a year to commercial payors alone, not including billing submitted to Medicare and other government payors. These billings generate significant net revenue streams to both physicians in private practices and to the hospitals, medical groups and other entities that commonly employ physicians. However, it is not just physicians who generate direct and indirect revenue for their practices or employers. Oher types of health professionals also generate direct and indirect revenue through the services they provide. In this report, AMN Healthcare tracks how certain types of allied healthcare professionals, including radiology professionals, physical therapists (PTs) occupational therapists (OTs) and speech language pathologists (SLPs) act as both direct and indirect revenue generators. It compares the cost of staffing these providers on a contingent basis to the net revenue generated from their activities, thereby demonstrating the potential return on investment (ROI) that can be realized from contingent allied professionals. Data included in the survey may prove useful to healthcare administrators tracking labor investment and ROI metrics, and to healthcare professionals, academics, journalists and others who follow healthcare workforce trends. METHODOLOGY To derive the numbers referenced in the report, AMN Healthcare’s Revenue Cycle Solutions division used internal data to track the daily cost of staffing allied radiology professionals and rehabilitation therapy professionals (e.g., PTs, OTs and SLPs) on a contingent basis. It contrasted this number with the gross average daily revenue generated by these providers based on the average number of cases they conduct and the average billing submitted for these cases. The payment rate per case is based on averages derived from real world billing submitted for radiology and therapy services nationwide. Investment gains (payments less investment costs) are computed over various time periods for which contingent allied radiology and rehabilitation professionals may be employed, including standard 13-week assignments, 6-month assignments and one-year assignments. These numbers indicate the net potential ROI of utilizing contingent allied professionals, as well as the opportunity cost of not having these professionals in place over given periods of time. Hospitals, medical groups and other employers of allied radiology and rehabilitation professionals can use a similar method for calculating potential ROI of their permanent staff by inserting permanent staff payments/ costs into the formula.
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