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CHAPTER 7: SERVKELNE COSTING AND PRICING Homework 3.3, Chapter 7 Assume that a primary care physician practice performs only

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Answer #1

a. Estimated Cost per RVU = Total cost ÷ total rvu's

= 800000 / (25+30+45) = 800000/100 = $8,000

b.

Level RVU Cost Cost per procedure
I 25 x 8000 = 200000 200000/3000 = $66.67
II 30 x 8000 = 240000 240000/1500 = $160
III 45 x 8000 = 360000 360000/750 = $480

c.

Level I 66.67 x 3000 = $200,000
Level II 160 x 1500 = $ 240000
Level III 480 x 750 = $ 360000
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