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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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