Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Northeast Medical Group, a family practice, has the following financial data and operational metrics: Number of physicians 5 Total revenue $2,748,360 Total operating costs $1,557,615

Northeast Medical Group, a family practice, has the following financial data and operational metrics:

Number of physicians 5

Total revenue $2,748,360

Total operating costs $1,557,615

Total procedures per physician 12,353

Patients per physician 1,941

Visits per physician 5,333

a. What is the groups revenue per physician?

b. What is the groups operating cost per physician?

c. What is the groups total operating profit?

d. What is the groups profit per physician? Per patient? Per visit? Per procedure?

e. Assume that the group plans to reinvest $50,000 of its profits in the practice.

(It plans to buy a new EKG [electrocardiogram] machine.) Also, assume that the remainder of profits will be distributed equally to the groups physicians as salary. What compensation will each physician receive?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Core Concepts

Authors: Raymond Brooks

4th Edition

134730417, 134730410, 978-0134730417

More Books

Students also viewed these Finance questions

Question

Who was the advocate for this patient?

Answered: 1 week ago