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Case 11

CASE 11 Student Version Copyright 2014 Health Administration Press
10/17/13
ORLANDO FAMILY PHYSICIANS
Pay for Performance
This case requires the development of a physician compensation scheme for a four-physician family
practice. The model uses historical data for inputs along with information regarding the amount of
compensation to be based on performance and how that performance is measured.
The model consists of a complete base case analysis—no changes need to be made to the existing
MODEL-GENERATED DATA section. However, some values in the student version INPUT DATA
section have been replaced with zeros. Thus, students must determine the appropriate input values and
enter them into the cells colored red. When this is done, any error cells will be corrected and the
base case solution will appear. Note that the model does not contain any risk analyses, so students
will have to create their own if required by the case. Furthermore, students must create their own
graphics (charts) as needed to present their results.
INPUT DATA: KEY OUTPUT:
Physician Compensation Allocation: Physician Total Compensation:
Physician Identifier
Base salary $0 A B C D Total
Performance pay $0
$0 Base salary $0 $0 $0 $0 $0
Physician Performance Pay Allocation:
Productivity Performance Pay:
Productivity Allocation: Patient visits $0 $0 $0 $0 $0
Patient visits 0% Work RVUs 0 0 0 0 0
Work RVUs 0% Professional procedures 0 0 0 0 0
Professional procedures 0% Financial Performance Pay:
Financial Performance Allocation: Gross charges 0 0 0 0 0
Gross charges 0% Net collections 0 0 0 0 0
Net collections 0% Net income before physician comp 0 0 0 0 0
Net income before physician comp 0% Quality Performance Pay:
Quality Allocation: Average patient satisfaction score 0 0 0 0 0
Average patient satisfaction score 0% Blood pressure control target met 0 0 0 0 0
Blood pressure control target met 0% Breast cancer screen target met 0 0 0 0 0
Breast cancer screen target met 0% Total Performance Pay $0 $0 $0 $0 $0
Total 0%
Physician Total Compensation $0 $0 $0 $0 $0
MODEL-GENERATED DATA:
Support Staff Data: Financial Data:
Number Pay Gross charges $2,242,648
Practice manager 1 $75,168 Net collections $1,747,059
Receptionist 2 $48,652 Practice expenses:
Nurses 4 $175,264 Support staff compensation $522,388
Medical assistants 2 $52,615 Facilities costs 298,351
Billing clerk 2 $62,165 Supplies cost 136,257
Laboratory technician 1 $46,788 Total practice expenses $956,996
Other costs $61,736
Total support staff compensation $522,388 Net income before physician comp $790,063
Physician compensation:
Base salaries $0
Performance pay 0
Total physician compensation $0
Net income after physician comp $790,063
Physician Data:
Physician Identifier
A B C D Total
Patient visits 4,023 3,567 3,966 4,244 15,800
Work RVUs 4,667 5,055 5,475 4,967 20,164
Professional procedures 6,255 6,972 7,287 6,742 27,256
Gross charges $527,820 $535,841 $602,675 $576,312 $2,242,648
Net collections $422,256 $401,881 $421,872 $501,050 $1,747,059
Net income:
Support staff allocation $119,883 $133,625 $139,663 $129,217 $522,388
Facilities allocation $74,588 $74,588 $74,588 $74,588 $298,351
Supplies allocation $31,270 $34,854 $36,429 $33,704 $136,257
Net income before physician comp $196,515 $158,814 $171,193 $263,541 $790,063
Average patient satisfaction score 89 80 87 94 350
Blood pressure control target met Yes Yes Yes No
Breast cancer screen target met No Yes No No
Physician Performance Pay:
Physician Identifier
A B C D Total
Productivity pay:
Patient visits 4,023 3,567 3,966 4,244 15,800
Proportion of total 25.5% 22.6% 25.1% 26.9% 100.0%
Performance pay $0 $0 $0 $0 $0
Work RVUs 4,667 5,055 5,475 4,967 20,164
Proportion of total 23.1% 25.1% 27.2% 24.6% 100.0%
Performance pay $0 $0 $0 $0 $0
Professional procedures 6,255 6,972 7,287 6,742 27,256
Proportion of total 22.9% 25.6% 26.7% 24.7% 100.0%
Performance pay $0 $0 $0 $0 $0
Financial performance pay:
Gross charges $527,820 $535,841 $602,675 $576,312 $2,242,648
Proportion of total 23.5% 23.9% 26.9% 25.7% 100.0%
Performance pay $0 $0 $0 $0 $0
Net collections $422,256 $401,881 $421,872 $501,050 $1,747,059
Proportion of total 24.2% 23.0% 24.1% 28.7% 100.0%
Performance pay $0 $0 $0 $0 $0
Net income before physician comp $196,515 $158,814 $171,193 $263,541 $790,063
Proportion of total 24.9% 20.1% 21.7% 33.4% 100.0%
Performance pay $0 $0 $0 $0 $0
Quality pay:
Average patient satisfaction score 89 80 87 94 350
Proportion of total 25.4% 22.9% 24.9% 26.9% 100.0%
Performance pay $0 $0 $0 $0 $0
Blood pressure control target met* 1 1 1 0 3
Proportion of total 33.3% 33.3% 33.3% 0.0% 100.0%
Performance pay $0 $0 $0 $0 $0
Breast cancer screen target met* 0 1 0 0 1
Proportion of total 0.0% 100.0% 0.0% 0.0% 100.0%
Performance pay $0 $0 $0 $0 $0
* 1=Yes, 0=No
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