Staffing a Coding Business

Both of these scenarios are based in statistics.  Your responses should reflect a careful analysis of the statistical principles involved.

Evaluation Title: Staffing Needs

Scenario 1: Staffing a Coding Business

You are the manager of a small coding business that contracts with physicians. The owner of your business has asked you to evaluate if adding another coder will help increase revenue and efficiency. You currently employ two coders, with annual salaries of $40,000 and $36,000. They each code an average of 6,500 records per person, per year. You are able to provide some training to a novice coder, therefore, you are open to interviewing applicants who code less than 6,500 records per year for this additional position.

1. List the factors you should consider regarding adding a new coder to the business.
2. What is the maximum annual salary you could pay a new hire?
3. How many records per year will the new hire need to code in order to make this additional hire a smart business decision? Explain your answer, including the calculation of unit cost.

Scenario 2: Case Mix for Hiring a New Physician

You are a manager responsible for hiring a new hospital physician. You have several qualified applicants, ready to be interviewed.

1. In approximately 100 words, explain the concept of Case Mix.
2. In Q&A format, provide three possible questions the applicants might ask you.