Woodbury, NY (PRWEB) January 20, 2014
Gettry Marcus CPA, P.C., a top New York City and Long Island CPA firm, discusses the benefits of using relative value units (RVUs) to measure productivity at a medical practice.
“Measuring productivity by RVUs is the preferred method as it puts all physicians on the same playing field. It takes out of the equation the differential in fees collected due to payor mix,” says Stuart Kertzner, Partner-in-Charge of Gettry Marcus CPA, P.C.’s Health Care Group.
The responsibility of creating a fee schedule rests with the physician, and with this responsibility comes opportunity. Every procedure or service gets assigned an RVU, and these RVUs offer a way for physicians to measure their productivity.
Unfortunately, physicians within a practice may not measure productivity in the same way, making the determination of productivity a big issue. One physician may assess it by the number of procedures performed, while others may assess it by revenue collected or number of office visits.
If a well-conceived fee schedule is important to group practice accounting, then a review of the RVU system becomes critical. Why? Because this is how to determine resource utilization and, ultimately, how much money the practice makes.
The managed care reimbursement methods used by payers can make it difficult to determine if each reimbursement will cover the cost of providing a service. RVUs solve this issue because they capture the amount and type of work done. Ultimately, that means the medical practice should be able to measure the cost for any service or procedure against the reimbursement received, develop an appropriate fee schedule and track productivity. Doing so improves the bottom line and profitability.
Gettry Marcus CPA, P.C. is a Top 200 firm nationally with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include Real Estate and Health Care. We have one of the premier and most credentialed business valuation, litigation and forensic accounting groups in the New York Area. Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.
Gettry Marcus is "Always Looking Deeper" to build value for our clients.
Media inquiries: Contact Fayellen Dietchweiler at 516-364-3390 ext. 225 or via email at Fdietchweiler (at) gettrymarcus (dot) com.