FTE MODEL 101: BALANCING RESOURCE CAPACITY AND DEMAND

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.

How to maintain 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 https://www.247medicalbillingservices.com info@247medicalbillingservices.com

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.