Burgos-Rojas, Veronica_Assignment.docx - Part 1 Overhead ratio shows the cost of office overhead It is used in a medical office to track the month to

Burgos-Rojas, Veronica_Assignment.docx - Part 1 Overhead...

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Part 1 Overhead ratio shows the cost of office overhead. It is used in a medical office to track the month to month or yearly expenses to run the practice. To calculate this is the equation used: Total expenses Physicianexpenses Adjustedreceipts = Overhead expense The physician expenses can include medical insurance, auto expenses, meals and entertainment, salary expenses, corresponding payroll taxes, travel and retirement plan contributions. Cost ratio is the cost of performing a procedure. It is used in a medical practice to determine the cost per procedure or service in the office. It is calculated by diving the total expense for 1 month by the number of procedures done that month. The equation is as follows: Total Total expenses ¿ of procedures ¿ = Cost per procedure Revenue ratio is used in a medical office to determine how much revenue is from each procedure. To determine this the total revenue is divided by the number of procedures performed in a certain period. The equation is as follows:
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  • Spring '15
  • ProfessorRobertSmiles

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