Tuesday
September 30, 2014

Homework Help: accounting

Posted by matt on Wednesday, June 10, 2009 at 11:28am.

P 4-6 "University Physician Compensation" 


Physicians practicing in eastern University's hospital have the following compensation agreement. Each doctor bills the patient (or Blue Cross Blue Shield) for his or her services. The doctor pays for all direct expenses incurred in the clinic, including nurses, medical malpractice insurance, secretaries, supplies, and equipment. Each doctor has a stated salary target (e.g., $100,000). For patient fees collected over the salary target, less expenses, the doctor retains 30 percent of the additional net fees. For example, if $150,000 is billed and collected from patients and expenses of $40,000 are paid, then the doctor retains $3,000 of the excess net fees [30 percent of ($150,000 - 40,000 - $100,000)] and Eastern University receives $7,000. If $120,000 of fees are collected and 40,000 of expenses are incurred, the physician's net cash flow is $80,000 and Eastern University receives none of the fees. 


Required: 

Critically evaluate the existing compensation plan and recommend any changes.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Accounting - Physicians practicing in Eastern University’s hospital have the ...
ela - could anyone help me answer this question , plz , thank you The following...
Chemistry - The average pH of precipitation in rural areas is 5.70. Assuming ...
Psychology - Unfortunately I have a D in the class, but I am an A student." When...
Psychology - 27. An understanding of a person's personality enables one to ...
Chemistry - Using this data, 2 NO(g) + Cl2(g) == 2 NOCl(g) Kc = 3.20 X 10-3 NO2(...
Chemistry - Using this data, 2 NO(g) + Cl2(g) == 2 NOCl(g) Kc = 3.20 X 10-3 NO2(...
Psychology - Families traveling with young children often make many stops as a ...
health - Compose a 750- to 1,050-word response describing the workers’ ...
Compensation and Benefits - Which of the following compensation areas is most ...

Search
Members