In this assessment, you will evaluate the physicians’ practice financial condition based on the following Relative Value Unit (RVU) calculations and analysis: Average and Marginal Costs per RVU, Total Average Cost, Total Marginal Cost per CPT code, and Analyzing the information to assist the physicians in using these costs appropriately and making informed decisions. You will be graded based on your understanding of the calculations, the accuracy of your calculations, the validity of your conclusions and your ability to clearly communicate your analysis. To complete this assignment, follow these steps: Review the article How Managerial Accountants Make Physician's Practices More Profitable From this financial information, calculate the three RVU calculations: Average and Marginal Costs per RVU, Total Average Cost, and Total Marginal cost per CPT code. In proper APA format, write a 3-5 page paper (include a cover and reference page not included in page count). For each RVU calculation, in a paragraph: Calculate the costs, Show your calculations, and Write a conclusion about the physician practice’s financial condition and discuss how you can assist the physicians in using these costs in making informed decisions. *Please use headings for each paragraph and category to decipher the discussion and organize the paragraphs. Use the following assumptions: Assume that during the FY2016 year, Lovely Life LLC historical costs were $750,000 when 11,000 RVUs were produced and $950,000 when 14,000 RVUs were produced. The contract specifies that the number of RVUs per service CPT code are five (5). High Total Fixed Costs $950,000 #RVUs high point 14,000 Low Total Fixed Costs $750,000 #RVUs low point 11,000 #RVUs per CPT 5 Projected #RVUs for the coming month 10,000

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Question

In this assessment, you will evaluate the physicians’ practice financial condition based on the following Relative Value Unit (RVU) calculations and analysis:

Average and Marginal Costs per RVU,
Total Average Cost,
Total Marginal Cost per CPT code, and
Analyzing the information to assist the physicians in using these costs appropriately and making informed decisions.

You will be graded based on your understanding of the calculations, the accuracy of your calculations, the validity of your conclusions and your ability to clearly communicate your analysis. To complete this assignment, follow these steps:

Review the article How Managerial Accountants Make Physician's Practices More Profitable
From this financial information, calculate the three RVU calculations:

Average and Marginal Costs per RVU,
Total Average Cost, and
Total Marginal cost per CPT code.

In proper APA format, write a 3-5 page paper (include a cover and reference page not included in page count). For each RVU calculation, in a paragraph:

1. Calculate the costs,
2. Show your calculations, and
3. Write a conclusion about the physician practice’s financial condition and discuss how you can assist the physicians in using these costs in making informed decisions.

*Please use headings for each paragraph and category to decipher the discussion and organize the paragraphs.

Use the following assumptions:

Assume that during the FY2016 year, Lovely Life LLC historical costs were $750,000 when 11,000 RVUs were produced and $950,000 when 14,000 RVUs were produced. The contract specifies that the number of RVUs per service CPT code are five (5).

High Total Fixed Costs	$950,000
#RVUs high point	14,000
Low Total Fixed Costs	$750,000
#RVUs low point	11,000
#RVUs per CPT	5
Projected #RVUs for the coming month	10,000