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Simwork Systems (SM) Your ERGOS® manufacturer and representative |
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Cost Analysis of ERGOS Work Simulator Testing and Work Hardening Programs We at Simwork Systems often are asked; "How does a facility justify the capital expense of testing hardware like ERGOS® ?" The answers to this depend on many elements and how well the facility markets existing and new customers. Below are items the facility must deal with if they are to have successful financial return on their investment. Most facilities focus on the existing referral markets being served by their therapy services. This primarily includes workers' compensation and acute care therapy. Workers' compensation is popular because payment is usually guaranteed if the treating or consulting physician makes referral. This is also the case if the facility is an authorized health care provider for general therapy services. What many facilities fail to do is identify other service areas that will be served in addition to traditional referral sources. Below is a list of referral sources and services that ERGOS® facilities can provide as part of justification for ERGOS® hardware investment. Return on investment is critical to justification. The performance output for each service is also provided based on recent fee schedules in the U.S. However, there are different fee schedules for each of the 50 states. This makes it difficult to predict how a users local market will produce income. Referral source, product and volume will determine return.
1 The number of staff to person being served directly affects profit. State laws in many instances; regulate the skill level of the person who can provide specific services. 2 This estimate is based on one evaluator per evaluee. The skill level of the evaluator is determined in some cases by state law or regulations and will affect profit depending on skill level and qualifications. It is possible to have up to three evaluators testing simultaneously on ERGOS®. It is therefore possible to increase the above estimate threefold. 3 Work hardening/conditioning fees are dependent on whether fees are based on hourly billing for services or tuition pricing and vary greatly from one state to another depending on whether the facility is required to be CARF or otherwise accredited. 4 Long Term Disability Insurance evaluations require that a vocational component be provided as part of the assessment. This requires that a portion of the assessment address elements of the available labor market. This is usually completed by a Vocational Evaluator or Vocational Rehabilitation Counselor and increases the evaluation labor cost. 5 Pre-employment assessments are typically charged based on the length of the protocol. The ERGOS® can produce 5400 minutes of billable testing time per week assuming that three evaluators are available and that three evaluations are being completed simultaneously. This estimate is based on six hours of billable time per day for each evaluator at the $2 to $3 per minute rate. |
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Official website of the ERGOS Work Simulator Visitors from Europe can also go to http://www.wrebv.com/ Copyright © 2001-2008 Simwork Systems of Tucson, Inc.ERGOS® and the ERGOS logo are registered trademarks of Work Recovery Europa, BV. Last modified: 04/20/08 |