Large Provider:
$500,000,000 Projected Annual Revenue
x 15% Provision of Doubtful Accounts
$75,000,000
* Improvement in Doubtful Accounts of just 5% = $3,750,000 per year
* Improvement in Doubtful Accounts of 20% = $15,000,000 per year
Mid-size Provider:
$50,000,000 Projected Annual Revenue
x 15% Provision of Doubtful Accounts
$7,500,000
* Improvement in Doubtful Accounts of just 5% = $375,000 per year
* Improvement in Doubtful Accounts of 20% = $1,500,000 per year
Large Billing / Collections Company:
$600,000,000 Projected Annual Revenue (2M registrations x $300 Billion)
x 25% Pure Self-Pay Accounts
$150,000,000 Total Pure Self-Pay
x 8% Collection Rate for Self-Pay
$12,000,000 Self-Pay Collections
$150,000,000 Total Pure Self-Pay
-$12,000,000 Self-Pay Collections
$138,000,000
* Improvement in Self-Pay Collections of just 5% = $6,900,000 per year
* Improvement in Doubtful Accounts of 20% = $27,600,000 per year