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Case 5
Not knowing what each procedure really costs you
Ever since the introduction of the managed care concept, physicians have been outmaneuvered by the ability of the insurance carrier to dance around the issues of cost with relation to the fixed fee schedule. In the past, you had to perform long and often inaccurate calculations in an attempt to determine what it actually costs to perform a procedure and whether or not the proposed managed care fee schedule was actually fair to your bottom line.
Solution:
Procedure Cost Accounting System Reports
Our Procedure Cost Accounting System produces a comprehensive easy-to-understand set of reports that show, for each procedure code:
- Billing, Collection and Cost per RVU
- Profit/Loss per RVU and per Year
- Revenue and Cost Allocation
- Break Even Fees for Fixed and Fee-For-Service Plans
When it comes to preparing your practice for managed care negotiations, this information is powerful. Knowing what your break-even fee is for each procedure based upon RVS (relative value units) costing techniques allows you to defend your practice's position on individual fee amounts.
This type of cost accounting will also identify consistency levels for comparison of one procedure code to another. It compares your collection rate to your expense rate and identifies by code, whether you are making money or not and how much profit or loss you have per unit and per year. This information can help you measure your expenses on a month-to-month basis for comparison with financial goals and budgets to keep you on the right track.
