FTE Model 101 Balancing Resource Capacity And Demand PPT
                     
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. 
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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
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.
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THE BALANCE BETWEEN RESOURCE 
CAPACITY & DEMAND
IT IS THE PROCEDURE OF BALANCING THE EFFORT AND TIME OF THE BILLING 
TEAM WITH THE REQUIREMENTS OF THE SERVICES TO BE BILLED FOR GETTING 
REIMBURSEMENT FROM THE INSURANCE COMPANIES. IN OTHER WORDS, IT 
FORECASTS WORKFORCE RESOURCE (MEDICAL BILLERS AND CODERS) 
SHORTAGES OR EXCESSES IN THE SHORT OR LONG TERM. IT IS COMPUTED BY 
ANALYZING THE GAPS BETWEEN RESOURCE CAPACITY AND RESOURCE DEMAND. 
THIS DIFFERENCE CAN BE MEASURED IN HOURS, FTES, OR PERSONAL DAYS. 
THERE IS A SHORTAGE WHEN RESOURCE DEMAND EXCEEDS CAPACITY OR 
SUPPLY. EXCESSIVE RESOURCE DEMAND EXISTS WHEN THE RESOURCE DEMAND 
EXCEEDS THE CAPACITY OR SUPPLY.
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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 24/7 Medical Billing Services
24/7 Medical Billing Services is the nation’s 
leading medical billing service provider catering services to more than 43 
specialties across the entire 50 states. You can rely on us for end-to-end 
revenue cycle management. We guarantee up to 10-20% increase in the 
revenue with cost reduction of your practice for up to 50%. 
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