| 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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