FTE Model 101 Balancing Resource Capacity And Demand
                     FTE Model 101: Balancing Resource Capacity And Demand
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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. 
Let’s have a deep dive into how to maintain such a balance 
between resource capacity and demand:
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FTE Model 101: Balancing 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
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.
Also Read: Full-Time Equivalent (FTE) Model
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Let’s begin with Calculations!
Let’s begin with Calculations!
Some factors to consider when measuring people’s capacity 
are:
● Any full-time or part-time employees who are available.
● Contractors or temporary employees are available.
● Any planned leaves of absence or contract terminations.
The next step is to compute the resource demand. The resource 
demand includes the resources needed to complete the 
hospital’s various billing tasks (including coding). Demand is 
typically measured in terms of hours, FTE, or personal days. If a 
full-time employee works 40
hours per week and the billing requires 56 hours per week, the 
FTE for the project is 1.4.
Also Read: Full-Time Equivalent (FTE) Model
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Why is balancing important?
A lack of proper resource planning can erode your doctor’s and 
physician’s efforts and eventually lead to zero or no 
reimbursements. Here is a step-by-step breakdown of how it 
can
derail reimbursements:
● Poor planning will result in overworking and overscheduling 
the in-house billers and
coders with conflicting priorities, eventually leading to 
exhaustion and burnout.
● When in-house team members are overworked and 
overscheduled, their morale
suffers.
● With low morale, such team members cannot give their 
100% in billing and coding work, leading to an endless rework 
cycle on claims submission.
● All this will enhance the time and cost for healthcare 
organizations, with a high risk of denials or rejections of claims.
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About Us
We are a medical billing company that offers ‘
24/7 Medical Billing Services’ and support physicians, hospitals, 
medical institutions and group practices with our end to end medical 
billing solutions. We help you earn more revenue with our quick and 
affordable services. Our customized Revenue Cycle Management 
(RCM) solutions allow physicians to attract additional revenue and 
reduce administrative burden or losses.
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Contact Us
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24/7 Medical Billing Services
Ohio
28405 Osborn Road, Cleveland, OH 44140
Texas
2028 E Ben White Blvd, #240-1030 Austin TX, 78741
Phone no / Fax :  +1 888-502-0537
                          Email us: [email protected]
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