Physicians for Women is a women’s health group practice with two practice locations. Last year, the practice established several benchmarks for productivity. The practice manager must now determine whether each practice location met the productivity targets for the year. The data in the table below have been gathered for each location. (You can assume any new information that you need)

 

Measurement Location 1 Location 2 Annual Visits 46,500 48,250 Annual Paid Hours 45,000 50,000 Patient Classification Direct Care Hours Level I 0.5 0.35 0.28 Level II 1.0 0.25 0.27 Level II 1.5 0.13 0.15 Level IV 2.0 0.22 0.3 Skill Mix Distribution MD ($101/hour) 0.50 0.65 Certified Nurse Midwife (CNM) ($46/hour) 0.15 0.25 RN ($36/hour) 0.35 0.10 Assume that 1 MD= 0.75 CNM and 1 MD = 0.45 RN. Using the data provided in the table, calculate the following productivity ratios for each practice location and determine whether each location met the productivity target for the year. a) Adjusted work hours/adjusted visits (target: 1.25) b) Total salary expense/adjusted visits (target: $110) c) Percentage of adjusted work hours in direct patient care (target: 97 percent) d) Total salary expense/hours of direct patient care (target: $85)