Practices that have historically paid pure salaries or split revenue equally are beginning to add measures of productivity into their salary plans. Why?

Many small groups are already incorporating some form of productivity into their compensation systems.
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Salaries and benefits are some of the greatest expenses in a practice. What are some other major expenses in a practice?

Pharmaceuticals, computers/equipment

The coding of charges must be accurate. Submission of erroneous charges can result in sanctions, fines, and/or criminal prosecution. Who is ultimately responsible for any coding in his or her name?

(The physician).

The revenue source is usually a combination of what two types of fees?

Technical & Professional

The total number of dollars which remain outstanding as a result of charges being billed is called what?

Accounts Receivable or AR

What appears to be the most commonly used and accepted metrics for measuring performance and professional value of service?

In a recent survey, the majority of group practices use a component of production in the compensation system in hopes of engaging the physicians in improving an institution’s financial performance.
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What are work RVUs, who introduced them and why?

The Health Care Financing Administration introduced work RVUs in 1991. The units measure physician productivity based on intensity of work.
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What is a CPT Code Report?

A report that provides an understanding of what specific services are provided by the practice, as well as what specific services contribute to the revenue.

When taking into account the financial potential of a practice, what are some factors to consider?

Physicians also must factor in debt, family obligations, and investment and retirement goals when considering the financial potential of a practice.
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Why do many medical groups develop a “fail-safe point” for its members?

Groups that divide at least some proportion of their income equally struggle with what to do with: low producers, disabled physicians, those who wish to lower their productivity for life-style purposes, and retiring physicians.
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Evaluating a Practice- Launch Your Career® for Residents and Fellows