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Category: Literature
Date Submitted: 06/13/2014 04:59 AM
AFF3431
Performance Measurement and Control
Case study Analysis
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From your reading of the case describe the issue(s) or problem(s) which should be the focus of your case analysis.
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All of the physician groups would need to earn a surplus on the basis of the revenue generated from their outpatient visits only.
Problem:
BMA has never tried billed for their time before; therefore they are not even sure this time if they are using the right approach.
The overhead budget is not completely certain.
Identify any principles, theoretical framework or relevant theories that can be applied to the case.
Line – item budgeting
Responsibility centre
What is the qualitative evidence that is relevant to the issue(s) or problem(s) identified above?
BMA has never tried time billing before. Dr King commented: this method is pretty daunting and it is not something that Gordon has done before therefore they are both struggling a little.
The overhead budget is not completely certain as the figures totally depend on the formulas from Coos Bay’s cost allocation system.
Physician’s base salary would based on his or her expected revenue, what if he or she deliberately set the salary up to an unachievable amount.
All inpatient revenue from both hospital and physician billings would be retained by the hospital, and only a portion of that can be distributed to physicians.
Revenue from outpatient laboratory and radiological testing would be retained by the freestanding facilities.
What is the quantitative evidence that is relevant to the issue(s) or problem(s) identified above?
Base salaries for physicians would be set at 42% of his or her expected revenue generation. 10% of which will be the kept in reserve until the end of the year if the group has reached 95% of its total revenue target.
All physicians in the...