Question
Medical Associates of the Upstate (a fictitious physician practice located in the SC upstate region) is developing its operating budget for the coming year. They
Medical Associates of the Upstate (a fictitious physician practice located in the SC upstate region) is developing its operating budget for the coming year. They have estimated the expected annual RVUs (using the RBRVS values and historical volumes) for Medicare patients seen by each physician in the practice as shown below:
Physician Work RVU Practice Expense RVU Malpractice Cost RVU
Smith 6,525 4,698 525
Jones 4,895 3,182 490
Hall 7,250 5,800 1088
Davis 5,560 3,780 560
Medicare publications indicate that the conversion factor for the coming year will be $39.20. What is the expected Medicare reimbursement to Medical Associates for the coming year (a) for each physician and (b) for Medical Associates in total? Show your calculations.
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