Why The Fte Model Is The Future Of Medical Billing And Coding Services

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Why the FTE Model is the Future of Medical Billing and Coding Services
Are you tired of going back and forth with insurance companies? Do coding mistakes keep slowing down your payments? Is your billing in-house staff overworking?
If these sound familiar, you are not alone. These are the most common struggles that are faced by many healthcare providers. Running your practice is already a full-time job, whereas handling billing problems on top of that can be stressful and time-consuming.
This is the reason for more providers switching to the Full-Time Equivalent model. This model gives you a dedicated billing and coding team that works just for your practice, without the need to hire full-time staff. Whether you need one person or a full team, the FTE model gives you trained professionals who take care of your billing, coding, and insurance work.
This blog will talk about why the FTE model is the future of medical billing and coding services.
How does the FTE Model Work?
The FTE model provides healthcare providers with an affordable and scalable means for managing their billing and coding tasks. ...
... Rather than depending on in-house personnel, providers have the advantage of outsourced medical billing and coding service providers who act as an extension of their revenue cycle team. The following is the process of the FTE model:

Step 1: Onsite or Virtual Consultation
A Client Service Manager connects with the hospital either in person or remotely to know about the existing billing and coding infrastructure, spot major issues, and discuss the ways outsourcing can enhance efficiency and outcomes.
Step 2: Detailed Revenue Cycle Analysis
A thorough analysis of the complete revenue cycle is conducted for various areas such as charge entry, coding accuracy, claim submissions, and AR follow-up. This determines the gaps and establishes a strategic plan for process improvement and revenue maximization.
Step 3: Model Choice
The provider has the option to bill on an hourly basis or pay a monthly fee on FTEs, which is usually the preferred billing method for its cost-effectiveness and predictability. This ensures the staffing solution will match the healthcare practice’s workload and budget.
Step 4: Deployment of Dedicated Billing & Coding FTEs
Certified medical coders and billing specialists are assigned exclusively to the account. These outsourced experts work full-time on the provider’s tasks. An Account Manager is also assigned to oversee the team to ensure compliance and monitor performance metrics such as claim denial rates, AR days, and clean claim ratios. FTEs can be calculated as:
Total Work Hours Required/ Monthly Hours of One Full-Time Employee
Important to Note: 1 FTE is normally assumed for 160 hours/month.
Step 5: Quick Replacement
If there is any FTE in the team who becomes unavailable or underperforms, an early replacement is assured to maintain consistency and prevent workflow disruptions.
Why the FTE Model is the Future
The FTE model blends remote efficiency with on-site reliability that offers fixed monthly costs, scalable staffing, and expert support without the overhead of hiring or managing employees. The following points highlight why the FTE model is the future:
• Predictable Monthly Costs
One of the biggest benefits of the FTE model is that you know your costs in advance. You pay a fixed fee each month, which covers salaries, tools, and overhead. This helps you plan your budget better, without worrying about hidden expenses like employee benefits, training, or last-minute hiring costs.
• Access to Specialized Skills
FTE staff are trained and certified in medical billing and coding. They bring in-depth knowledge of coding updates, payer rules, and compliance requirements. This reduces claim errors, minimizes denials, and ensures faster reimbursements while improving your revenue cycle performance.
• Tech and Compliance Ready
FTE service providers use secure, up-to-date technology that meets HIPAA standards. They offer billing platforms, encryption tools, regular system checks, and reporting dashboards. This reduces your responsibility to maintain software, handle compliance issues, or invest in expensive IT infrastructure.
• Turns Data into Strategy
FTE providers often include analytics tools that monitor denial rates, billing cycles, and revenue trends. This data-driven insight helps practices spot problems early and optimize workflows that lead to smarter decisions and improved financial performance.
• Future-Proof Adaptation
Healthcare is changing fast, and remote work is now common. The FTE model supports this shift by giving you flexible, reliable, and expert support from anywhere. It is a smart way to prepare your billing process for the future while keeping your operations efficient and up to date.
• AI & Automation Tools
FTE teams often use AI tools like RPA and NLP to handle repetitive tasks, such as claim entry and code selection, quickly and accurately. This reduces human error, speeds up processes, and frees your experts to work on complex cases requiring oversight.
• Lower Overhead
With the FTE model, you avoid the high costs of hiring and managing in-house or remote employees. You don’t need to worry about office space, equipment, software, or employee benefits. This makes it a more cost-effective solution for many independent practices and clinics.
FTE Model – Your Way Forward!
Undoubtedly, your medical billing and coding system plays a crucial role in how smoothly your healthcare facility or practice runs. When there are delays, mistakes, or not enough staff, it can hurt both your revenue and patient satisfaction.
To determine if it is time to switch to the FTE model, you must pay closer attention to your existing billing process.
Are claims getting denied often? Is your staff undertrained? Will a dedicated outsourced team be more effective?
If your practice is expanding, your billing system also needs to grow with it. With rising administrative demands and the need for accurate, timely reimbursements, the FTE model stands out as a smart, modern solution.
Ready to opt for the FTE model? Speak to the revenue cycle expert of InfoHub Consultancy Services today and discover how the FTE model can transform your billing process and support your long-term success. The FTE model offers flexibility, scalability, and access to expert Medical billing and coding professionals without the added stress of hiring and training full-time staff.