Compare FMMG's Process Costs to the averages of all private thoracic practices, and to the other three practices in the benchmarking group. Which business processes are significantly higher or lower than the other practices?. What business conclusions can be drawn from this data? What are the implications for process improvement and cost reduction? Table 1

Process Costs and Practice Information Note: Four separate business processes are often bundled together and are known as the Reimbursement processes, and the total of these four processes is noted separately in (a). Two business processes (Sets Bus and Facility) are reallocated to the other processes in the ABC model, rather than directly to the cost objects, so the costs of these two processes are included in the other listed processes. The costs of each of these two business processes are listed for information purposes only.

 

Table 1 Process Costs and Practice Information Practice # TOTAL COST OF PROCESSES Service Patients in the Office Service Patients in the Hospital Obtain Insurance Authorization (a) Maintain Medical Records Schedule & Coordinate Surgeries Billing (a) Collect Payments (a) Resolve Collection Disputes (a) Provide Information to 3rd Parties Teaching & Research Maintain Professional Education TOTAL (a) Total Reimbursement Processes Sustain & Manage Business Maintain Facility Number of MDs Number of no-charge office visits Number of charge office visits Number of charge hospital visits Number of surgeries 1 ABC/ABM in Healthcare Case, Part II $383,011 $101,268 $41,797 $36,237 $20,720 $51,584 $16,766 $11,263 $20,720 $0 $13,035 $696,401 $121,410 $326,987 $88,785 3 868 2,518 570 546 3 $63,434 $71,120 $17,422 $59,118 $26,694 $18,218 $6,445 $6,751 $17,558 $2,376 $18,467 $307,603 7 1 418 334 54 263 $74,908 $153,029 $9,122 $36,664 $44,435 $41,001 $35,759 $60,938 $15,683 $0 $27,264 $498,803 $48,836 $146,820 $92,475 $117,640 $77,856 $145,458 21 Siegel, Kaciuba & Mangold 333 215 28 208 FMMG $347,045 $186,764 $45,930 $69,705 $30,915 $64,950 $54,199 $58,333 $16,989 $0 $31,118 $905,948 $223,412 $153,906 $223,180 3 1,188 1,975 779 639 Database Average $212,046 SPO $173,192 SPH $28,991 Auth $57,133 MMR $36,415 Sched $45,352 Bill $26,234 Collect $32,792 Disputes $17,230 3rd pties $297 T&R $37,163 MPE $666,845 Proc. Abbvn $133,369 Reimb $170,211 Sust Bus $121,203 Facility 4.1 1,038 422 97 727 Note: Four separate business processes are often bundled together and are known as the Reimbursement processes, and the total of these four processes is noted separately in (a). Two business processes (Sust Bus and Facility) are reallocated to the other processes in the ABC model, rather than directly to the cost objects, so the costs of these two processes are included in the other listed processes. The costs of each of these two business processes are listed for information purposes only. Page 5 of 11