strategize in ways for reducing costs and increasing revenue for the practices

Strategize in ways for reducing costs and increasing

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strategize in ways for reducing costs and increasing revenue for the practices for which they are employed regardless of their employment status (W2 or 1099 contractor). "If the practice is losing money, no NP will be able to negotiate a satisfying agreement, no matter how excellent they are" (Buppert, 2015, p. 330). References Buppert, C. (2015). Nurse practitioner's business practice & legal guide (5th ed.). Retrieved from Kreimer, S. (2014). Building better care teams with non-physician providers. Medical Economics, 91(22), 25-34. Retrieved from - economics/news/building-better-care-teams-non-physician-providers?page=full (Links to an external site.) Week 3: Organizational Behavior and Business Influences and Advanced Practice Nursing Case Study Part Two 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 and 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, and 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). Establishing a salary can be a challenge for NPs. Deducting 40% of the NP's gross generated income for overhead expenses (rent, benefits, continuing education, supplies, malpractice, lab expenses, and
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depreciation of equipment) leaves $104,280 for the 15-patient-per-day NP and $166,925 for the 24- patient-per-day NP. Further deducting 15% of that figure to pay a physician for consultation services leaves $88,638 in salary for the 15-patient-per-day NP and $141,887 in salary for the 24-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). What salary would you propose for the contract renewal? How does your salary proposal fit in with the community standard for an NP in a similar practice? 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.
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