99.9% Accuracy – Cost of Ownership


Accuracy matters: P2E provides true 99.9%+ accuracy.

What is the cost of errors for every 1% of accuracy difference?

Numbers vary, but a commonly used number in the industry is that it costs $35 to fix an error (when factoring in all the time of people involved to question, research and handle mistakes). What if it was half that and only $17.50? What if it was half that and only $8.75? 

Using 1/4th of the commonly used industry rate to correct errors

10,000 claims with a 1% error rate = 100 errors X $8.75 = $875 

What does that mean? If you used ¼ of the number used to calculate cost of errors, it costs you $875 for every 1% error rate per 10,000 claims processed.

How does Eagle Innovations compare? Eagle guarantees accuracy rates of 99.9% or better!

ex: 10,000 claims
accuracy rate
(num errors) X (cost of errors)
cost of errors per 10,000 claims
additional cost per claim
10,000 claims
99.9% accuracy rate
10 errors X $8.75
$ 87.50
$ .01
10,000 claims
99% accuracy rate
100 errors X $8.75
$ 875.00
$ .09
10,000 claims
98% accuracy rate
200 errors X $8.75
$ 1,750.00
$ .18
10,000 claims
97% accuracy rate
300 errors X $8.75
$ 2,625.00
$ .26
10,000 claims
96% accuracy rate
400 errors X $8.75
$ 3,500.00
$ .35

And again, this is if you used ¼ of the number used to calculate cost of errors

Does a 1% difference in accuracy really matter? You bet it does! At a 96% error rate you would need to add $.35 or more onto what you are already paying, just to cover the cost of handling errors! And this is just the cost! What about the provider relationship? Increased errors are always an embarrassment!

When comparing vendor transaction costs make sure you factor in the hidden cost of lack of accuracy. 

If you’re interested in learning about how much time, money, and risk conversion errors are costing you, contact us now, and let us get you on the road to not only being paper free, but error free.