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This assignment entails evaluating an excel spreadsheet and doing the essay as indicated by the attached instructions. You will need the case study to do the assignment and I will get that tomorrow evening. But thought I would post what I do have in case anyone has any old information on the “Bangor Family Physicians and Compensation Case Study.” Please see attached documents. The case study that I can send tomorrow evening is about 6 pages long. The work has to be precise and detailed. It’s a Master’s level course.
Assignment 6.2:
Bangor Family Case
In order to ensure that a physician practice performs well financially and operationally one aspect that must be considered is the compensation methodology chosen to pay the physician. This methodology could be based on financial factors such as revenue or net income produced. Alternatively, the model could be based on productivity or quality/patient satisfaction of some combination of the above. This following assignment will involve you taking a closer look at these methodologies and determining which you believe is best among the choices given. Although there is not necessarily one correct answer, finding the methodology that fits best for the physicians is very important in ensuring best or desired performance by the physician.
Before beginning this assignment, please listen to the podcast below, provided by Dr. Budd.
Click the link below to listen to the podcast. To download the podcast, right-click on the link, click Save Link As…, and save it to your computer.
Bangor Family Case
Read the Bangor Family Case in your course pack, and view the following
Productivity Data
compiled by your instructor: (ATTACHED With Assignment)
Productivity Data (Productivity Data is also attached as an Excel Spreadsheet)
Then, prepare a case briefing in which you answer the following questions:
1. Review physician compensation under each of the four compensation systems described above. Briefly describe to a colleague unfamiliar with these methods how each works.
2. Identify the strengths and weaknesses of each model.
3. Recommend the system that you believe is best for Bangor Family Physicians. In addition, discuss why managing a physician practice and maintaining the appropriate amount of productivity can be a significant challenge for any organization or group of individuals.
Your paper should not exceed 500 words.
All sources, including course materials, must be cited in text in APA style. Remember that course materials need not be included in your references page, but all other references must be.
> ase 1
SE 11
06
/ /05
ANGOR FAMILY PHYSICIANS
EL-GENERATED DATA section. However, some values in the student version INPUT DATA
amount in base pay
A B C D Total 300,000 ,0 ,039
0,000
0,208
720,000 5,304
720,000 720,000 50% ,800
4,667 6,255 1,881
1 2 4 2 2 1 A B C D Total 91 87 12 16 8 4 40 15 12 10 18 55 1 2 0 0 3 Physician Identifier $421,872 $501,050 $1,747,059 $0 75,000 75,000 75,000 75,000 75,000 300,000 Total should equal $300,000 30,000 30,000 30,000 30,000 30,000 $177,509 $177,443 $720,000 100.0% $0 $0 $300,000 Total should equal $300,000 Base pay 75,000 75,000 75,000 75,000 75,000 75,000 300,000 Total should equal $300,000 $720,000 Total should equal $720,000 Net collections $422,256 $401,881 $421,872 $501,050 $1,747,059 522,388 74,588 74,588 74,588 298,351 136,257 100.0% $0 $0 $300,000 Total should equal $300,000 Base pay 75,000 75,000 75,000 75,000 75,000 75,000 300,000 Total should equal $300,000 $720,000 Total should equal $720,000 $75,000 $75,000 $75,000 $300,000 150,000 $720,000 Base pay $75,000 $75,000 $75,000 $75,000 $300,000 150,000 $720,000 Base pay $75,000 $75,000 $75,000 $75,000 $300,000 150,000 $720,000 Notes: (1) The RVUs listed are work RVUs, which are only one of the three component RVUs used in Medicare physician reimbursement. (2) Over the past five years, the average annual amount reinvested in the preactice was $80,000. (3) In 2005, each physician received a bonus of approximately $28,000.
2
C
1
C
A
Instructor Version
Copyright 2
0
8
3
by FACHE
B
Pay for Performance
This case requires the development of a physician compensation scheme for a four-physician family
practice. The model uses historical data for inputs along with information regarding the amount and
type of compensation to be based on performance and how performance is measured.
The model consists of a complete “base case” analysis–no changes need to be made to the existing
MO
D
section have been replaced with zeros. Thus, students must determine the appropriate input value and
enter them into the cells colored red. When this is done, any error cells will be corrected and the
base case solution will appear. Note that the model does not contain any risk analyses, so students
will have to create their own if required by the case. Furthermore, students must create their own
graphics (charts) as needed to present their results.
INPUT DATA:
KEY OUTPUT:
Compensation System Parameters:
Physician Compensation:
Total
$
300,000
Based On
Total amount in performance plan
Net revenue
$177,509
$17
4
10
$177,443
$1
91
$
720,000
Total amount in profit distribution
12
Work RVUs
4,667
174,436
18
186,457
178,899
$720,000
Net income
6,2
55
179,620
16
170,005
205,071
Multiple Factor Distribution:
Mult. factors*
180,929
192,865
174,817
171,388
Percentage based on financial performance
50%
Percentage based on noneconomic factors
*Multiple factors plan includes non-economic factors plus work RVUs
100%
Historical Physician Data:
Physician Identifier
A B C D Total
# Patients
4,023
3,567
3,966
4,244
15
# RVUs
5,055
5,475
4,967
20,164
Professional procedures
6,972
7,2
87
6,742
27,256
Gross charges
$527,820
$535,841
$602,675
$576,312
$2,242,648
Net collections
$422,256
$
40
$421,872
$501,050
$1,747,059
Total support staff cost
$
522,388
Total facilities costs
$
298,351
Total supplies cost
$
136,257
Revenue reinvested in practice
$78,892
Physician base compensation
$600,000
Historical Support Staff Data:
Number of Employees
Total Compensation
Practice Manager
$75,168
Receptionist
48,652
Nurses
175,264
Medical assistants
52,615
Billing clerk
62,165
Laboratory technician
46,788
Other costs
61,736
Total $522,388
Non-Economic Data:
Average patient satisfaction score
93
90
361
Number of committee meetings
Continuing education credits
Professional assn. leadership
182
221
128
130
661
MODEL-GENERATED DATA:
Compensation Based on Net Collections (Revenue)
A B C D Total
Net collections $422,256
$401,881
Proportion of revenues
24.2%
23.0%
24.1%
28.7%
100.0%
Performance compensation
$72,509
$69,010
$0
$72,443
$86,039
$300,000
Total should equal $300,000
Base pay
75,000
Profit distribution
30,000
120,000
Total should equal $120,000
Total compensation
$174,010
$191,039
Total should equal $720,000
Compensation Based on Work RVUs
Work RVUs 4,667 5,055 5,475 4,967 20,164
Proportion of revenues
23.1%
25.1%
27.2%
24.6%
Performance compensation
$69,436
$75,208
$81,457
$73,899
Profit distribution 30,000 30,000 30,000 30,000 30,000 30,000 120,000 Total should equal $120,000 Total compensation
$174,436
$180,208
$186,457
$178,899
Compensation Based on Net Income
Support staff allocation
119,883
133,625
139,663
129,217
Facilities allocation
74,588
Supplies allocation
31,270
34,854
36,429
33,704
Net income
$196,515
$158,814
$171,193
$263,541
$790,063
Proportion of net income
24.9%
20.1%
21.7%
33.4%
Performance compensation
$74,620
$60,304
$65,005
$100,071
Profit distribution 30,000 30,000 30,000 30,000 30,000 30,000 120,000 Total should equal $120,000 Total compensation
$179,620
$165,304
$170,005
$205,071
Compensation Based on Multiple Factors
Base pay
$75,000
Profit distribution 30,000 30,000 30,000 30,000 120,000
Noneconomic compensation
41,212
50,261
29,088
29,439
150,000
Based on net collections
36,254
34,505
36,221
43,019
Total compensation
$182,466
$189,766
$170,309
$177,458
Profit distribution 30,000 30,000 30,000 30,000 120,000
Noneconomic compensation 41,212 50,261 29,088 29,439 150,000
Based on work RVUs
34,718
37,604
40,729
36,950
Total compensation
$180,929
$192,865
$174,817
$171,388
Profit distribution 30,000 30,000 30,000 30,000 120,000
Noneconomic compensation 41,212 50,261 29,088 29,439 150,000
Based on net income
37,310
30,152
32,502
50,035
Total compensation
$183,522
$185,413
$166,591
$184,474
END
Note: The model gives equal weight to each of the three non-economic factors.
