Assess the practice market

Written by Reed Tinsley, CPA | August 30, 2007

Before evaluating existing managed care agreements or entering into new ones, be armed and ready with information about your practice. Gather a minimum of 12 months of practice utilization data. Obtain the following information for demographic groups (e.g., age, gender, ZIP code, and if available, race, employer, income, and educational levels):

  • Number of active patients seen in the past two years, by payer mix
  • Office visits/procedures per year
  • Average visits/procedures per active patient/year
  • Average inpatient days per active patient/year
  • Diagnosis frequency by demographic group
  • CPT frequency by demographic group
  • Calculate average cost per visit/procedure

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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