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Applying the 1.7 extra minutes per discharge, we estimated it would take an extra 425 minutes (1.7 times 250) to code the discharges in the first month. At $50 per hour, the cost per minute is $0.83 ($50 divided by 60 minutes) and the cost per claim is $1.41 ($0.83 times 1.7). For the first month, the productivity loss for inpatient coding is $353 ($1.41 times 250). Assuming for simplicity's sake that the resumption for productivity over the six-month period would increase in a straight line, we divide the $353 by six to come up with $59. We reduce the productivity loss by this amount each month through the sixth month. The total loss for the six-month period is $1233.
Required:
Within this scenario the productivity loss for the six-month learning period is calculated to be $1,233. Beginning with month #1 at $353 ($1.41 times 250 equals $353), compute the cost of productivity loss for the remaining five months as explained in the scenario, to total an overall amount of $1,233. show and explain your computations.?
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