Dec 14

Continuously Measure and track physician productivity

Regardless of how your group divides income, keep track of production with quantitative data. Once your group agrees on the standards it will use to quantify production, calculating each doctor’s contribution is fairly straightforward.

Consider using these seven basic approaches to measuring physician work:

1. Gross charges
2. Net charges (Gross charges less contractual adjustments)
3. Net collections per physician
4. Net medical revenue allocated per physician
5. Gross charges times collection rate (the specialty’s or the group’s)
6. Relative value units (RVUs)
7. A blended approach (e.g., RVUs and charges; equal shares and net medical revenue, etc.)

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →