3. Assume that a primary care physician practice performs only physical examinations. However, there are three levels of examinations I,…

3. Assume that a primary care physician practice performs only physical examinations. However, there are three levels of examinations I, II, III – that vary in depth and complexity. An RVU analysis indicates that a Level I examination requires 10 RVUs , a Level II exam 20 RVUs, and a Level III exam 30 RVUs. The total costs to run the practice, including a diagnostic laboratory, amount to $500,000 annually, and the numbers of examinations administered annually are 2,400 Level I, 800 Level II, and 400 Level III.
a. Using the RVU methodology, what is the estimated cost per type of examination?
b. If the goal of the practice is to earn a 20% profit margin on each examination, how should the examinations be priced?

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Order a unique copy of this paper

600 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal

Order your essay today and save 25% with the discount code GREEN