Wednesday, May 28, 2014

econ review question 8



Your DCA wants you to work with the family practice clinic chief, a Dr. F, to develop a BCA to increase the RVUs in the clinic.  Dr. F wants to hire an additional provider because providers make RVUs.  He says we just take the number of RVUs a provider can make times the $/RVU, subtract the cost of the provider, and voila! you have your BCA.

After you overcome Dr. F’s myopia and convince him that there are other costs to be considered, how would you categorize the expenses?  Which are variable, which are fixed, which should be considered in the BCA, which should not, and why?

(this question crosses classes, but most of your oral questions will)

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