Case Study_Orlando Family Physicians.docx

Case Study_Orlando Family Physicians.docx - Orlando Family...

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Orlando Family Physicians Pay for Performance: A Case Study Jessica Bochenek Lisa Chaney Tiffany Jeter Laura Kay University of Scranton HAD 521
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Productivity Measures Number of patient visits A B C D Patient Visits 4,023 3,567 3,966 4,244 Proportion 25.5% 22.6% 25.1% 26.9% Performance Pay $30,554 $27,091 $30,122 $32,233 A B C D Base Salary $150,000 $150,000 $150,000 $150,000 Patient Visits $30,554 $27,091 $30,122 $32,233 Total Compensation $180,554 $177,091 $180,122 $182,233 Work relative units (RVUs) A B C D Work RVUs 4,677 5,055 5,475 4,967 Proportion 23.1% 25.1% 27.2% 24.6% Performance Pay $27,774 $30,083 $32,583 $29,560 A B C D Base Salary $150,000 $150,000 $150,000 $150,000 Work RVUs $27,774 $30,083 $32,583 $29,560 Total Compensation $177,774 $180,083 $182,583 $179,560 Professional Procedures A B C D Professional Procedures 6,255 6,972 7,287 6,742 Proportion 22.9% 25.6% 26.7% 24.7% Performance Pay $27,539 $30,696 $32,082 $29,683 A B C D Base Salary $150,000 $150,000 $150,000 $150,000 Professional Procedures $27,539 $30,696 $32,082 $29,683 Total Compensation $177,539 $180,696 $182,082 $179,683
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Question: Are the results consistent among measures? Answer: No, the results vary between the productivity measures because each of them measure performance and productivity differently. For example, physician A receives a total compensation of $180,554, $177,774, and $177,539 from the three different measures. Even though they had 25.5% of the patient visits, they have 23.1% of the RVUs and 22.9% of the professional procedures. The graph below displays the variation in total compensation between each of the three productivity measures and shows the variation between the measures. Patient visits Work RVUs Professional procedures $174,000.00 $176,000.00 $178,000.00 $180,000.00 $182,000.00 $184,000.00 Productivity Allocation A B C D Financial Measures Gross charges A B C D Gross charges $527,820 $535,841 $602,675 $576,312 Proportion 23.5% 23.9% 26.9% 25.7% Performance Pay $28,243 $28,672 $32,248 $30,837 A B C D Base Salary $150,000 $150,000 $150,000 $150,000 Gross charges $28,243 $28,672 $32,248 $30,837
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Total Compensation $178,243 $178,672 $182,248 $180,837 Net collections A B C D Net collection $422,256 $401,881 $421,872 $501,050 Proportion 24.2% 23.0% 24.1% 28.7% Performance Pay $29,003 $27,604 $28,997 $34,416 A B C D Base Salary $150,000 $150,000 $150,000 $150,000 Net collection $29,003 $27,604 $28,997 $34,416 Total Compensation $179,003 $177,604 $178,977 $184,416 Net income A B C D Net income $196,515 $158,814 $171,193 $263,541 Proportion 24.9% 20.1% 21.7% 33.4% Performance Pay $29,848 $24,122 $26,002 $40,028 A B C D Base Salary $150,000 $150,000 $150,000 $150,000 Net income $29,848 $24,122 $26,002 $40,028 Total Compensation $179,848 $174,122 $176,002 $190,028 Question: Are the results consistent among measures? Answer: No, the results vary between the financial measures because each of them measure performance and financial contribution differently. Gross charges ignore discounts, allowances and costs, where net collections take those into account. These performance measures given different results based on the discounts determined by some payers or the cost of the procedures undertaken.
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