Deducting 10 for employer profit leaves 79775 in salary for the 15 patient per

Deducting 10 for employer profit leaves 79775 in

This preview shows page 4 - 7 out of 9 pages.

patient-per-day NP. Deducting 10% for employer profit leaves \$79,775 in salary for the 15-patient-per-day NP and \$127,699 for the 24-patient-per- day NP (Buppert, 2011). Discussion Question: What salary would you propose for the contract renewal? Use logical reasoning and provide evidence based rationales for your decisions. Keep in mind that your negotiation terms and conditions must be within the legal scope of practice for an ANP. Compensation is largely based on geographical location, then it takes into account the number of years of experience, and also what the company can afford to pay. In Tampa, Florida the mean salary of an NP as of February 2017 is \$97,172 (Salary.com,
2017). The salary range for an NP is between \$90,162 and \$105,560 (Salary.com, 2017). I also checked the Bureau of Labor Statistics for NP salaries, they report the mean annual wage to range between \$91,290 to \$96,830 (BLS, 2016). As a new NP, I would expect to make approximately \$85,000 to \$90,000. For the contract negotiations, I will have to assume my current pay is somewhere between \$90,000 to \$105,000. Basing my revenue generation on 24 patients per day at \$70 per visit, after the 10 percent collection rate is deducted, I would bring in \$347,760 a year. Now we have to subtract overhead at 40 percent, physician consultation services at 15 percent, and employer profit at 10 percent. This leaves \$121,716 in profits each year. Based on this number, I feel a fair wage would be \$100,000 base salary with a bonus structured on performance as well as health, dental, and vision insurance, 4 weeks vacation, 2 weeks sick time, and licensure reimbursement. Salary.com (2017). Nurse practitioner salaries in Tampa Florida. Retrieved from Bureau of Labor Statistics (2016). Annual mean wage of nurse practitioners, by area, may 2015. Retrieved from **( On a side note, sort of, I believe that the 15 percent consultation fee cited in the book is incorrect. In fact, Medicare, which is fee-for-service, typically only reimburses non-physician providers at 85 percent for new patients and/or new health problems, not 90 percent. The only exception to this rule is if the facility is considered a rural area of service. I think the 15 percent is really referring to this reimbursement rate. In all actuality, **( I believe that the 15 percent cited in the book as physician consultation is not correct. Medicare guidelines and most commercial insurances stipulate that a nurse practitioner or physician assistant will be reimbursed at 85 percent of the fee schedule for a new problem or a new patient. In order to be paid at 100 percent of the fee schedule the NPP must see the patient under the incident to billing rule. In that case the physician NPI is list in line 17 of the HCFA 1500 as the referring provider form and a 1G modifier is placed by the billing department in order to reflect that patient was seen as a follow up to the original plan as forth by the doc. Furthermore if one wants to know if a NP is actually generating a profit we
car refer to the RVU relative value unit The dollar amount of the conversion factor is established each year by Congress. For 2017 it is \$37.89 You can take the number of visits , the look at the CPT code used for those same visits and you can establish

You've reached the end of your free preview.

Want to read all 9 pages?

• Fall '15
• ?