KOGSYThe diagnosticExample memo
Example memo: an invented agency, not a customer
Riverbend Home Care does not exist. Every figure below is arithmetic on inputs that were made up to fill the page, and none of it is a measurement of anything. We publish this so you can see the format of the memo before you pay for one, not to suggest anybody has had this result. We have no customer results to show you yet, and when we do we will say whose they are and get permission first.
This is what arrives within two business days of a Documentation Cost Diagnostic. One page. The assumptions used, the records missing, and one of three recommendations.
Measurement Readiness Memo
What we put in the model
All of it came from you on the call. Nothing was looked up and nothing was assumed without saying so here.
- 62 caregivers, averaging 2.5 shifts each per week, 50 working weeks → 7,750 shifts a year.
- Bill rate $32/hr, caregiver cost $23/hr, loaded office rate $26/hr.
- Shift notes written by the office. You estimated 12 minutes each; you have not timed it.
- Schedule-to-invoice differences: you did not have a figure. Left blank rather than guessed.
What the model says, given those inputs
Documentation runs to roughly 1,550 hours a year, about $40,300 at your office rate. That figure is only as good as the 12 minutes, which is the number you were least sure of, and it moves by about $3,400 for every minute either way.
Billing accuracy could not be sized. Your annual billings are around $3.7m, so a single percentage point of disagreement between schedule and invoice would be $37,000. We do not know whether your rate is a tenth of that or five times it, and neither do you.
Records you would need, and do not yet have
- You have: a scheduling export with dates, times and caregiver references. That half is ready.
- You do not have: invoices in a form that can be matched to it. They are produced in a separate system and the client reference does not carry across. This is the blocker.
- Nobody currently owns the comparison rules: what counts as a disagreement, how a corrected invoice is treated. That is a half-hour decision, not a project, but it has to be made by someone who can make it stick.
Recommendation
Prepare first. Not "do nothing", because a percentage point of your billings is worth knowing about and you cannot currently see it. Not "run the measurement" either, because the invoice export cannot be matched to the schedule today, and a fortnight spent discovering that is a fortnight wasted.
Two things make you ready, and both are yours to do without us: get a client reference onto the invoice export, and agree the three comparison rules in writing. If that takes a fortnight, the measurement is worth booking after it. If it turns out to be impossible with your current systems, tell me and we will say so plainly rather than sell you a measurement that cannot run.
What this memo is not
It is not a measurement. Every number above is arithmetic on figures you gave me in an hour, including one you told me you were unsure of. It is not an audit, not a compliance opinion and not a clinical view of anything. No client or patient information was requested, given or held at any point.