Cost Survey for Single-Specialty Practices: 2011 Report Based on 2010 Data
Appendix C: Formulas and Methodology
Formulas
Months of gross fee-for-service charges in accounts
receivable =
(Total accounts receivable)
(Gross FFS charges) × (1/12)
Months of adjusted fee-for-service charges in accounts
receivable =
(Total accounts receivable)
(Adjusted FFS charges) × (1/12)
Days of gross fee-for-service charges in accounts
receivable =
(Total accounts receivable)
(Gross FFS charges) × (1/365)
Days of adjusted fee-for-service charges in accounts
receivable =
(Total accounts receivable)
(Adjusted FFS charges) × (1/365)
Gross fee-for-service collection percentage =
(Net FFS revenue) × 100
(Gross FFS charges)
Net capitation revenue percentage of gross capitation
charges =
(Net capitation revenue) × 100
(Gross capitation charges)
Total cost =
(Total operating cost) + (Total provider cost)
Adjusted fee-for-service collection percentage =
(Net FFS revenue) × 100
(Adjusted FFS charges)
Gross fee-for-service plus capitation collection percentage =
((Net FFS revenue) + (Net capitation revenue)) × 100
(Total gross charges)
Total operating and NPP cost = (Total operating cost) + (Total nonphysician provider cost)
Total medical revenue after operating cost and NPP cost =
(Total medical revenue after operating cost) – (Total nonphysician provider cost)
Data Normalization Calculations
Per FTE physician =
<performance measure>
(Total physician FTE)
Per total RVU =
As a percentage of total medical revenue =
<performance measure>
(Total medical revenue)
Per work RVU =
Per FTE provider =
<performance measure>
(Total provider FTE)
Per patient =
Per square foot =
<performance measure>
(Square feet)
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<performance measure>
(Total RVUs)
<performance measure>
(Physician work RVUs)
<performance measure>
(Number of patients)