Bonita 33 - Question1 The physician compensation under each of the four methods is as given below Based On/Physician A B $174,01 C $177,44 D Total

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Question1 The physician compensation under each of the four methods is as given below Based On/Physician A B C D Total Net revenue $177,509 $174,01 0 $177,44 3 $191,039 $720,000 Work RVUs 174,436 180,208 186,457 178,899 720,000 Net income 179,620 165,304 170,005 205,071 720,000 Mult. Factors 180,929 192,865 174,817 171,388 720,000 Under each of the system there is fixed base pay of $75000 and $30000 of profit distribution to each of the physician. Thereafter there is another pool of $300,000 to be distributed among the physician based on factors relevant to each of the compensation system. Under the net revenue system gross bonus of $300000 to be distributed among the physician based on their contribution towards the total revenue. For example physician A had contributed total revenue of $422256 on the total revenue of $1747059, implying 24.2% of the total revenue. On account of this physician A had extra income of $72509 based on $300000*24.2%. Under the Work RVU system the bonus of $300000 is divided based on the RVU per physician. Under the net income based compensation system, each of the physicians is allocated other overhead of the hospital, including supplies, support staff and facilities support expense. Thereafter the net income contribution for each of the physicians is calculated and the bonus amount is allocated to each of them, based on their % contribution to total profit multiplies by gross bonus of $300000.
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Under the multiple factor allocation system, the compensation is allocated based on the several economic and non-economic factors like patient satisfaction, amount of committee work, participation in continuing education and several other economic parameters. Question 2
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This note was uploaded on 12/04/2011 for the course ECONOMICS 201 taught by Professor Rcollier during the Spring '10 term at Portland CC.

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Bonita 33 - Question1 The physician compensation under each of the four methods is as given below Based On/Physician A B $174,01 C $177,44 D Total

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