rate, a 10 percent deduction will be applied, putting my total revenue generated at $289,800. For my contract I would include everything discussed in the above paragraphs. As an incentive to my employer I could propose increasing the amount of patients I see to 24, which would have me bringing approximately $347,760 (this number includes the 90 percent collection rate) to the practice every year. Increasing my patient load by 4 patients would increase the practice’s revenue by $57,960. Buppert, C. (2015). Nurse practitioner’s business practice & legal guide (5 th ed.) . Retrieved from Danielsen, R. D., Potenza Ll, A. D., & Onieal, M. (2016). Negotiating The Professional Contract. Clinician Reviews , 26 (12), 28-33 ? url=? direct=true&db=a9h&AN=120338590&site=eds-live&scope=site PART 2: As revenue generators, NPs must be aware of how their work contributes to the overall revenue of the clinical practice. You see 20 patients per day on average, & take call every third weekend. According to Buppert (2011), an NP who sees 15 patients per day at $56 per patient visit, on average, brings in $840 per day. Allowing 1 week off for continuing education, 1 week off for illness, & 4 weeks off for vacation, this NP will bring in $193,200 a year, potentially. However, not all bills are paid. With a 90% collection rate—a reasonable collection rate for an efficient practice—this NP actually will bring in $173,800 per year. An NP who sees 24 patients per day will bring in $1344 per day, or $309,120 per year in accounts receivable. With a 90% collection rate, this NP will bring $278,208 to the practice (Buppert, 2011). Discussion -: In this scenario, what are you “worth” to the practice? Use logical reasoning & provide evidence based rationales for your decisions. Keep in mind that your negotiation terms & conditions must be within the legal scope of practice for an ANP .
In business, the worthiness of its employees, in this instance the NP, is predominately based on the revenue the employee generates. Buppert (2015) has since updated the cost per patient from $56 per visit to $70, when considering fee-for-service compensation. An efficient practice will have a collection rate of 90 percent (Buppert, 2015). As I calculated in the first threaded discussion, after the 10 percent deduction for uncollected monies, at 20 patients per day my total revenue generated would be $289,800 & at 24 patients a day it would be $347,760. These numbers do not include the revenue I generate from taking call or rounding in the hospital. In addition, these numbers do not include deductions for office overhead, profit leaves, & physician consulting services. Buppert (2015), estimates overhead expenses to be at 40 percent, consultation services at 15 percent, & profit leaves at 10 percent. For sake of this conversation, I will only deduct an additional 40 percent for overhead expenses. In doing so, my revenue generation at 24 patients per day equals $208,776 yearly. Again, this number does not include revenue generated from call or rounding.
You've reached the end of your free preview.
Want to read all 9 pages?
- Fall '15
- NR 510