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Statistics budget: changing RVU weight. How would the estimate of commercial wei

ID: 2469950 • Letter: S

Question

Statistics budget: changing RVU weight. How would the estimate of commercial weighted encounters (Exhibit I.1e) change if ZMG Hospitalist Practice estimated that its admissions had a relative value weight of 3.50 and the follow-up visits had a relative value weight of 1.75 (Exhibit I.1d)?

Exhibit 1.1e Weighted Encounters by payor and type

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Commercial

Admissions

1,892

1,768

1,908

1,772

1,692

1,736

1,776

1,828

1,760

1,860

1,788

1,968

21,748

Follow-up

2,838

2,652

2,860

2,656

2,540

2,606

2,664

2,740

2,638

2,792

2,684

2,950

32,620

Total

4,730

4,420

4,768

4,428

4,232

4,342

4,440

4,568

4,398

4,652

4,472

4,918

54,368

Medicare

Admissions

2,944

2,748

2,964

2776

2636

2704

2760

2844

2736

2896

2784

3060

33,832

Follow-up

4,416

4,124

4,448

4,132

3,952

4,054

4,142

4,264

4,104

4,342

4,176

4,588

50,742

Total

7,360

6,872

7,412

6,888

6,588

6,758

6,902

7,108

6,840

7,238

6,960

7,648

84,574

Medicaid/Self Pay

Admissions

420

392

424

392

376

388

396

408

392

412

396

436

4,832

Follow-up

630

590

636

590

564

580

592

610

586

620

596

656

7,250

Total

1,050

982

1,060

982

940

968

988

1,018

978

1,032

992

1,092

12,082

Total

13,140

12,274

13,240

12,298

11,760

12,068

12,330

12,694

12,216

12,922

12,424

13,658

151,024

Note: Computed by multiplying the projected encounters by type and payor in Exhibit 1.1c by the RVUs (4 for admissions, 2 for follow-up) in exhibit 1.1d, rounded to the nearest whole number

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Commercial

Admissions

1,892

1,768

1,908

1,772

1,692

1,736

1,776

1,828

1,760

1,860

1,788

1,968

21,748

Follow-up

2,838

2,652

2,860

2,656

2,540

2,606

2,664

2,740

2,638

2,792

2,684

2,950

32,620

Total

4,730

4,420

4,768

4,428

4,232

4,342

4,440

4,568

4,398

4,652

4,472

4,918

54,368

Medicare

Admissions

2,944

2,748

2,964

2776

2636

2704

2760

2844

2736

2896

2784

3060

33,832

Follow-up

4,416

4,124

4,448

4,132

3,952

4,054

4,142

4,264

4,104

4,342

4,176

4,588

50,742

Total

7,360

6,872

7,412

6,888

6,588

6,758

6,902

7,108

6,840

7,238

6,960

7,648

84,574

Medicaid/Self Pay

Admissions

420

392

424

392

376

388

396

408

392

412

396

436

4,832

Follow-up

630

590

636

590

564

580

592

610

586

620

596

656

7,250

Total

1,050

982

1,060

982

940

968

988

1,018

978

1,032

992

1,092

12,082

Total

13,140

12,274

13,240

12,298

11,760

12,068

12,330

12,694

12,216

12,922

12,424

13,658

151,024

Explanation / Answer

A B C D E F Weghted Encounter Fees Gross Patient Service Revenues(Axb) Discount Percentage Discount Net Patient Service Revenue(C-E) Commercial Admission 21748 100 2174800 0 0 2174800 Follow up 32620 100 3262000 0 0 3262000 Total 54368 5436800 5436800 Medicare Admission 33832 100 3383200 0 0 3383200 Follow up 50742 100 5074200 0 0 5074200 Total 84574 8457400 8457400 Medical/Self Pay Admission 4832 100 483200 0 0 483200 Follow up 7250 100 725000 0 0 725000 Total 12082 1208200 1208200 Note:Assuing that Fees is equal to $100.