Doctors Mobey, Oak, and Chesterfield have been in a group practice for several years. Mobey and Oak are family practice physicians, and Chesterfield is a general surgeon. Chesterfield receives many referrals for surgery from his family practice partners. Upon the partnership's original formation, the three doctors agreed to a two-part formula to share income. Every month each doctor receives a salary allowance of $3,000. Additional income is divided according to a percent of patient charges the doctors generate for the month. In the current month, Mobey generated 10% of the billings, Oak 30%, and Chesterfield 60%. The group's income for this month is $50,000. Chesterfield has expressed dissatisfaction with the income-sharing formula and asks that income be split entirely on patient charge percents.

Doctor Payment Allocation Chart

1.Income allocation per original agreement

Mobey

Oak

Chesterfield

Total

Salary allowance

$ 3,000

$3,000

$3,000

$9,000

Per patient charges

4,100*

12,300**

24,600***

41,000

Totals

$ 7,100

$15,300

$27,600

$50,000

*(.10 x 41,000)

**(.30 x 41,000)

***(.60 x 41,000)

2.Income allocation per Chesterfield's proposal

Mobey

Oak

Chesterfield

Total

Per patient charges

$ 5,000

(.10 x 50,000)

$15,000

(.30 x 50,000)

$30,000

(.60 x 50,000)

$50,000

Required

Identify and discuss in detail the ethical components of this partnership decision for the doctors.