CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework 3.3, Chapter 7 Assume that a primary care physician
Question:
CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework 3.3, Chapter 7 Assume that a primary care physician practice performs only physical examinations, with three different levels, depending upon the depth and complexity of each exam.An RVU analysis determined the required RVUs for each exam as indicated below.The total costs to run the practice, including diagnostic, as well as the annual projected number of examinations for each level are also listed below. Exam RVU's # Exams Level I 25 3,000 Level II 30 1,500 Level III 45 750 Total exams 5,250 Total costs $800,000 a. Using RVU methodology, what is the estimated cost per RVU? Cost per RVU b. What is the estimated cost per type of exam? Cost/Exam Level I Level II Level III c. Based on the cost per exam, what is the estimated annual cost for each exam? Total Costs Level I Level II Level III TOTAL
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