[NPInfo] Practice Issues

[Carla Anderson]

I agree completely Meg, and also in addition to the billing I might add that the NP/PA become familiar with what is actually being reimbursed or collected, and there is one method of calculating % based productivity that Carolyn Buppert mentions which is to take your salary amount, say for example 70,000.00 as an example. Then anything that you bill over double your salary , for example you bill out 140,000, then you get paid 20% of all billings in excess of the 140,000 you billed for. This is billings, not collections. For example, if I understand her method correctly, lets say you see patients for employer and bill out 500,000.00 in a year for this employer.  Subtract double your salary, which would be 500,000-140,000=360,000.  Then you get 20% of 360,000 = 72,000 per year. There are other ways in which you receive say 35% of the actual reimbursement not what is billed. Say you see 2-3 patients per hour with reimbursement at 200.00 per hr, for a 40 hr week this =8,000.00
 per week, approx 32,000.00 a month, and for 11 mos, assuming 1 month vacation/holidays = 352,000 per year that you have brought in as collections for your employer. You get 35% of this =123,000.00 per year. Your employer gets 229,000.00 just for you being there, while he/she sleeps, minus any overhead you might bring such as addl electricity, or equipment. This is a win win situation, and is just one of several scenarios. But the important thing is to be aware as Meg said of how much you are billing, and get a good idea of based on your billings, what is being collected on your direct behalf or your contribution to the organization. This is just a general example, the exact figures would vary with each situation, and overhead is divided more the smaller the practice, and fewer providers. Carla/Portland, OR

mmhelgert46 at comcast.net wrote:  Nurse Practitioners (et al) need to become well versed in practice management, billing/coding issues and the financial issues impacting practices. We need to know exactly what we are billing each day/month to be able to have some ammunition when it comes time to negotiate a contract which may include a base salary and % rate. This is what we need to all be doing.......physicians/employers are lining their pockets with the fruits of our labor and we don't even know the amount we are billing vs the actual salary we are receiving........Meg (Portland OR)
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