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FTE augmentation benefit analysis

October 22, 2019

Top Reasons Healthcare Organizations Are Turning To Workforce Extension Services

There are many factors influencing the growing trend among healthcare providers of all shapes and sizes to augment portions of their workforce.  As providers try to keep pace with national healthcare reform efforts many find themselves facing more complex reimbursement schemes, including risk based models, while being forced to improve quality and data reporting. Likewise hospitals are more commonly suffering from cost overruns and payment inadequacy.  Macroeconomic changes continue to impact the healthcare market with growing numbers of patient-responsible copayments and deductibles.  Bad debt, charity care and uninsured discounts now exceed 20% of the market.

More and more provider organizations are turning to FTE augmentation as a means to combat the ever-changing healthcare landscape. One of the primary advantages of FTE supplementation is the ability to retain control without having to directly manage the daily process.  This is particularly true for the Revenue Cycle and Coding areas.  Within both of these processes tremendous economies can be gained through FTE workforce augmentation.

Main reasons for FTE augmentation include:

  • Retain control without the headaches of daily process management
  • Guaranteed ability to reduce labor costs
  • Reduce overall operating costs
  • Provide stability to operating budget rather than deal with fluctuations
  • Remove barriers such as rigid employment rules and restrictive work practices
  • Recognition of actual FTE costs are higher than budget, typical ratio is 1.45 to 1
  • Due to; FMLA, sick leave/absenteeism, turnover, and retraining costs
  • High geographic area wage costs and employee contracts
  • Retirement/pension costs, unions, and benefits
  • FTE replacement costs
  • Employee “housing costs” (office, desk, phone, workstation, etc.)

Generally speaking, today’s standard hospital revenue cycle departments are less efficient than an external workforce augmentation provider chiefly due to attrition rates, staff resistance to change, which prevents long-term results, retirement and pension costs, essential scaling capabilities, and hiring and retraining costs. Additionally, available area talent may be limited or at a premium.  Further, local talent may lack end-user knowledge for employing new key technology tool sets. 

FTE Workforce Augmentation Provides Organizational Savings

Implementing the correct augmentation strategy specific to your environment can have an immediate impact by reducing operational costs and simultaneously increasing daily productivity output.  By evaluating the essential economics it becomes apparent how such a strategy can impact the bottom line.  

The financial example below outlines two different approaches to FTE supplementation.  The “Near State” model refers to using a skilled workforce located in a neighboring state with lower associated labor costs.  The second “Near Shore” model utilizes certified expert FTEs that are located outside the country borders.  The “Near Shore” model FTEs do not have any direct interaction with patients.

Chart:  An example of recent savings for a client desiring to subcontract 10 RCM remote FTEs, as well as 10 Coding remote FTEs.  Both options are outlined with their associated guaranteed savings, Near State and Near Shore.  (All associated FTE costs are calculated into the example, i.e. benefits, pension, turnover, FMLA, replacement, training, housing, etc.). 

As demonstrated in the chart above, both the Near State and Near Shore options provide an immediate and substantial savings for the healthcare institution (36% and 51% respectively).  Further, the FTE augmentation model delivers a flat monthly fee, eliminating payment fluctuations.  Ultimately, the health system is able to drive more to the bottom line, as operational costs are fixed and payer/patient reimbursement isn’t based upon a 3rd party collections contingency fee agreement.  The supplemental remote workforce is simply an extension of the provider’s current environment.

Reasons To Use Coronis For Workforce Augmentation

Healthcare is a unique business with unique challenges.  As the industry continues to change, trusting a partner that is nimble enough to adapt with the shifting environment is key.  Coronis supports your organization by providing the right people with the right skill sets at the right time. Coronis removes the daily distractions, allowing you to focus on core competencies, while still maintaining complete overall control. 

The Coronis workforce augmentation solution guarantees you improved operational performance, little to no risk, access to 24/7 credentialed employee solutions, no disruptions to current working environment, simple contracting, and a significant decrease overall operational expenses. Coronis prides itself on being a trusted partner.  

Particular benefits of the Coronis include:

  • Nimble.  Coronis is the most flexible FTE augmentation organization in the industry today.  Our extensive remote workforce capabilities allow for quick adaptation to client specific needs.
  • Low cost.  We guarantee to impact your operational bottom line.  Our FTE model is offered by specialty, by type, and below industry standard rates.
  • Outcome.  Coronis contractually guarantees industry standard performance matrix by FTE type requested.  The result is higher productivity and decreased operating costs.  Excellence is our #1 objective.
  • Client service.  Coronis is devoted to customer satisfaction. We are committed to developing and maintaining positive, long-lasting relationships with our clients and ensuring satisfaction through providing quality services.
  • Location. Our geographic location provides for a wealth of highly trained FTEs with a wide range of experience from large-system and academic medicine, to the smaller independent community hospitals.  Our entire workforce is highly motivated and educated healthcare billing/coding professionals that are able to make an immediate impact for your organization. We are close enough to be onsite at your facility the same day, and still far enough away to guarantee an impact to your operational costs.
  • Flexible workforce.  Our geographical locations also provide for a very educated staff, non-union, right to work state environment.  The staff members are held responsible for their actions.  Our high accountability standards directly correlate to our high productivity output.
  • Experienced and dedicated staff. All FTEs are dedicated members of your team.  They do not work on multiple client accounts at the same time.  They are entrenched in and understand your organizational methods and philosophies.  All of our FTEs are industry certified professionals with multiple years of experience.
  • Process.  Your Policies, Your Procedures, Our People.  We are an extension of your team.  Continuous process improvement and business continuity planning with our clients is an ongoing effort resulting in better efficiencies that positively impact the bottom line.
  • Leadership. Our senior executive team has over 100 years combined industry experience.
  • Guarantee.  The numbers we agree upon during the analysis phase are the same numbers used within the contracting phase.  We guarantee the agreed upon savings.
  • Contracting.  We understand and appreciate the delicate contracting needs of healthcare providers both large and small.  Therefore, we provide and deliver flexible contracting terms.  These terms consequently provide a situation where there is little or no risk for your organization.


As the US healthcare market continues to evolve, so do the demands to find better and more cost effective ways to address the changes.  FTE augmentation is a proven and cost effective model whereby provider organizations are able to significantly reduce costs while simultaneously increasing output, all without any major disruption to the current work environment.

The Coronis workforce augmentation program is a straightforward means to lower your operating costs while still maintaining full control. Coronis offers the most flexible FTE extension solution in the industry today.  The Coronis FTE augmentation model ensures that you will improve performance, minimize risk, be supported by industry-seasoned veterans, and maintain the competitive edge of being nimble, all resulting in significant on-going bottom line savings.

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