Question

Community Hospital just hired a contract coder who charges $5.00 per record coded. Last week she coded 300 records. The HIM manager would like to hire an FTE instead of using a contract coder. She finds an experienced coder who wants a salary of $25.00 per hour. The hospital has a 30 percent benefit package.

What is the weekly salary of the contract coder? $450

Which would more cost effective?

Keep the contract coder

or

Hire the full time experienced coder

Answer 1

The contract coder charged $5.00 per record coded. The previous week she coded 300 records.

Assuming that the benefit package does not apply to contract coders,

Weely Salary of the contract coder = $5.00 x 300 = $1500.00

Assume 40 working hours per week,

Weely Salary without benefits package of the full time experienced coder = $25.00 x 40 = $1000.00

Weely Salary including benefits package of the full time experienced coder = $1000.00 * 1.3

= $1300.00

Since, the weekly salary including benefits package of the full time experienced coder is less than the contract coder,

the cost effective solution is to Hire the full time experienced coder