The physician compensation under each of the four methods is as given below
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.