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EconomicsFinanceROI
Nov 24, 202410 min read

The Real Cost of AI Scribes vs. Human Scribes: ROI Calculator & Analysis

Financial breakdown: per-provider cost, payback period, and hidden expenses of both models.

Most clinics pay more for human scribes than they realize.

Human Scribe Costs: The Full Picture

A contracted scribe typically costs $18–$25/hour (regional variation). Full-time is 40 hours/week, so annual cost per scribe is roughly $37,000–$52,000. But that is only the direct cost.

Add training (40-60 hours at provider time = $3,000–$5,000), turnover (new hire every 18-24 months = 20% annual cost), benefits/payroll tax (20-30% overhead), and coverage gaps (vacation, sick time, burnout-driven turnover). Real cost per scribe climbs to $50,000–$65,000/year.

  • Hourly rate: $18–$25.
  • Benefits and overhead: +20-30%.
  • Training and onboarding: +$3,000–$5,000/scribe.
  • Turnover cost: +15–20% annually.

AI Scribe Costs: Transparent and Predictable

Ara.so charges per transcription minute, typically $0.50–$1.50/minute depending on volume and deployment (SaaS vs. private cloud). A 20-minute visit costs $10–$30. For a provider seeing 30 patients/week (600 minutes), that is $300–$900/month, or $3,600–$10,800/year.

Overhead is minimal: licensing is all-inclusive, no benefits, no hiring, and no turnover. The trade-off: you are paying for every visit, even when the provider is on vacation.

  • Per-minute pricing: $0.50–$1.50.
  • Average cost per provider: $300–$900/month.
  • No hiring, training, or turnover costs.
  • Overhead: minimal (just software support).

Comparison: 3-Provider Practice

A three-provider primary care practice with contracted scribes: Human scribe cost = 3 providers × $55,000/scribe = $165,000/year. But if one scribe covers all three, you need 1.5 FTE (because coverage gaps), so real cost = 1.5 × $55,000 = $82,500/year.

Same practice with Ara.so: 3 providers × 600 minutes/week × 50 weeks/year × $0.60/minute = $54,000/year. Slightly cheaper on annual cost, but huge differences emerge when staffing changes.

  • Human scribes: ~$82,500/year (for 1.5 FTE).
  • AI scribes: ~$54,000/year (for 3 providers).
  • Savings: $28,500/year.
  • But the real win is predictability and zero turnover risk.

Hidden Costs of Human Scribes

Space: Each scribe needs desk space, hardware, and seating (add ~$2,000–$3,000/year in real estate).

Onboarding: Clinicians spend 40–60 hours training new scribes (opportunity cost at provider rates = $3,000–$5,000).

Turnover: Replacing a scribe who leaves after 18 months is a full hiring cycle (recruiting, background check, training = $5,000–$10,000).

Quality variance: Not all scribes are equal; you pay the same regardless of output quality.

  • Space and overhead: +$2,000–$3,000/year.
  • Training per new hire: +$3,000–$5,000.
  • Turnover friction: +$5,000–$10,000 per exit.
  • Quality inconsistency: Unquantified productivity drag.

The Time-Savings Multiplier

Both models claim to save clinicians time, but by how much? Human scribes save 1.5–2 hours/day per provider through reduced note-writing. This translates to extra patient capacity or earlier days off.

AI scribes save 2–3 hours/day per provider through instant summaries and fewer edit cycles. The advantage: clinicians still enjoy the scribe benefit (no time at the keyboard) without the interpersonal overhead.

  • Human scribes: 1.5–2 hours saved/day.
  • AI scribes: 2–3 hours saved/day.
  • Extra capacity value: 1 extra patient/day = $5,000–$15,000/year in additional revenue.

Breakeven Analysis

For a solo provider or small practice, Ara.so reaches breakeven against contracted scribes in 6–9 months. For larger groups, the payback is immediate because per-unit cost drops and administrative overhead shrinks.

For in-house scribe programs (which are more expensive due to benefits and hiring), AI scribes are cheaper from day one.

  • Vs. contracted scribes: 6–9 month payback.
  • Vs. in-house scribes: Immediate savings.
  • Risk is lower because AI contracts are month-to-month, not FTE commitments.

Key takeaways

  • True human scribe cost is $50,000–$65,000/year per FTE (not just hourly rate).
  • Ara.so costs $3,600–$10,800/year per provider, with no turnover risk.
  • Accounting for training, turnover, and space, AI scribes break even or save money within 9 months.
  • The real value is consistency and zero hiring overhead.
  • Use saved time to add patient capacity or improve clinician wellbeing.