Problem
Using the attached excel allowable fee schedule and RVU conversion factor, answer the following questions:
A. Suppose insurance reimbursement is 80% of the allowable fee. What was the total insurance reimbursement amount received for the twelve patients? What was the total reimbursement for work? What was the total reimbursement for practice expense? What was the total reimbursement for malpractice insurance? If patients pay the remaining 20% of the allowable fee in coinsurance, what was the total amount paid by patients. Overall, what was the average (of total) revenue received per patient seen?
B. Suppose that the practice has practice expenses equal to $9,600 per week. If the average practice expense reimbursement is $80 per patient, how many patient encounters does the practice need to complete each week to cover 100% of the practice expense? Now suppose that the average practice expense reimbursement is only $60 per patient; how many patient visits are needed now to cover 100% of the practice expense?
C. Suppose that the total practice expense per week is $7,500, and that the average practice expense reimbursement is $75, and the practice sees 105 patients in a week. What was the practice's net return on investment (ROI) for practice expense investment? If the practice only saw 80 patients during the week, what was the practice's net ROI for practice expense?