How At-Home Medical Transcriptionists Get Paid

Calculating Pay for Employees and Independent Contractors

May 15, 2009 Patricia Deneen

Have you ever wondered how companies pay medical transcriptionists? Learn how pay is figured using production-based line count rates.

Medical transcription is one of the most popular work-at-home careers. Whether a medical transcriptionist is applying for a position as an independent contractor or as an employee, it's best to know exactly how to figure out what the pay will be before accepting the job.

Production-Based Pay Rate

Since medical transcription is done without supervision, the companies that hire MTs need to have a reliable way of keeping track of the work being done in order to pay appropriate wages. This is accomplished through a production-based system that utilizes line counts.

Average Daily Line Counts

The MT industry has set a standard of between 1000 to 1500 lines a day as the norm for full-time work. MTs who are hired as employees are expected to type the minimum set forth by their employer.

Independent contractors have more flexibility in the amount of lines they have to type to keep working for a given employer. However, when an IC starts work for a company, there is usually a contract both parties sign after agreement has been reached on the amount of lines the MT will type daily.

How Line Counts are Calculated

The average line for MT work is based on a 65-character line with spaces. MTs receive payment per line. The average starting per-line rate for someone entering the field is between 6 and 9 cents. Not all companies pay for spaces which significantly cuts into earning potential.

Some companies use special line counting software. Others have their MTs use the line-counting feature built into Microsoft Word. Below are examples of how pay is calculated using line count based on 1000 lines.

• Example using company-provided line count of 1000: Multiply lines by line rate of pay: 1000 x .07 = $70.
• Example using Microsoft's line counting software: Divide characters with spaces count by 65. Round number off to second decimal point. Multiply total by line rate of pay and round to second decimal (if needed): 70,000/65 = 1076.92 x .07 = $75.38.

Using Word Expansion to Increase Line Count

Since line count is so important to the amount of money MTs make, they want to increase it every way they can. Besides developing typing speed, they use word expansion. There is special word expansion software that either the company has included with the transcription system or the MT purchases on her own. Microsoft Word also comes with built-in word expansion capabilities.

Word expansion works like code. A word, phrase or entire paragraph can be stored in the software. When the MT wants to type that phrase, he simply types in the code he has assigned to it, and it's automatically entered into the document. For example, BP could be used as the code for blood pressure, a common term used repeatedly in reports. This saves on typing time, but the MT gets paid for typing out the full phrase.

Choose Wisely

Pay based on the line counts is the standard for home-based ICs and employees. The information presented here will help MTs decide what job offers to accept. For up-to-date information on MT salary, visit the U.S. Department of Labor online Occupational Outlook Handbook page on medical transcription.

The copyright of the article How At-Home Medical Transcriptionists Get Paid in Career Advice is owned by Patricia Deneen. Permission to republish How At-Home Medical Transcriptionists Get Paid in print or online must be granted by the author in writing.

MTs and Money

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