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9.12 Physicians for Women is a women's health group practice with two practice locations. Last year, the practice established several benchmarks for productivity. The practice

9.12 Physicians for Women is a women's health group practice with two practice locations. Last year, the practice established several benchmarks for productivity. The practice manager must now determine whether each practice location met the productivity targets for the year. The data in Table EX 9.12 have been gathered for each location.

Table Ex 9.12
Measurement Location 1 Location 2
Annual Visits 46,500.00 48,250.00
Annual Paid Hours 45,000.00 50,000.00
Patient Classification Direct Care Hours
Level I 0.50 0.35 0.28
Level II 1.00 0.25 0.27
Level III 1.50 0.13 0.15
Level IV 2.00 0.22 0.30
Skill Mix Distribution
MD ($101/hour) 0.50 0.65
Certified Nurse Midwife (CNM) ($46/hour) 0.15 0.25
RN ($36/hour) 0.35 0.10
Assume that 1 MD= 0.75 CNM and 1 MD = 0.45 RN

Using the data provided in Table EX 9.12, calculate the following productivity ratios for each practice location and determine whether each location met the productivity target for the year. a. Adjusted work hours/adjusted visits (target: 1.25) b. Total salary expense/adjusted visits (target: $110) c. Percentage of adjusted work hours in direct patient care (target: 97 percent) d. Total salary expense/hours of direct patient care (target: $85)

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