important facts and figures related to how NP income in the facility is calculated. According to Buppert, (2015), the nurse practitioner income is based on the following steps: Amount billed by the Nurse practitioner, deduction of 10% from unpaid bills, subtracting 20- 25% for practice expenses, deduction of 10-20% physician consultation fee and deduction of employer profit (P.332) . Having knowledge of these figures will help me to negotiate a better contract. For instance, if I was paid $56/patient last year, and seeing 15 patients per day, I will negotiate for a 5% increase. This will result to $58.80/patient. I may also decide to increase my patient load to 20/day. This will amount to an income of $1, 176/day and $270,480.00/year. If I assume a 90% collection rate, that will leave me with $243,432. Deducting 40% overhead expenses, will leave me with $146,059. Deducting 15% physician consultation will leave me with $124,150. If my employer takes 10% employer profit my final income will be $111,735.00. These figures will help me to increase my income and hopefully at the end of the day, I will succeed with a reasonable income agreement which will satisfy me and also benefit my employer for the next contract. Also, prior to negotiation for renewal of contract, it is essential to make sure that my negotiation conditions are within the legal scope of practice for NP and also know the basic salaries made by other nurse practitioners in my community and other places. According to a report by American Association of Nurse Practitioners, NP’s annual income increased from $98,000 in 2011 to 108,643 in 2015 (as cited in AACN Bold Voices, 2015). This type of information will help to guide me in making an informed negotiation for increase in salary. References
American Association of Critical-Care Nurses (2015). Annual income for nurse practitioners on the rise. AACN Bold voices, 7(10), 7. Retrieved from ? vid=5&sid=05764025-526a-4868-bf44-dae5f9167027%40sessionmgr4007 Brown, L.A., & Dolan, C. (2016). Employment contracting basics for the nurse practitioner. The Journal for Nurse Practitioners, 12(2), e45-e51. DOI: Buppert, C. (2015). Nurse practitioner’s business practice & legal guide (5th ed.). Burlington, MA: Jones and Bartlett.
You've reached the end of this preview.
- Fall '15