Specialty: 1 of 12 specialties shown here Region: National or 1 of 4 regions shown here CHARGES Annual Gross Charges Medicare Medicaid Other Insurance Self Pay Lab Charges Percentage X-ray Charges Percentage Adjustments Percentage
$454,878 – 597,028 18 – 28% 2 – 8% 58 – 68% 3 – 7% 12 – 13% 2 – 6% 28 – 32%
COLLECTIONS Annual Collections Gross Collection Percentage Net Collection Percentage Accounts Receivable Ratio Days Gross Charges in A/R A/R Percentage 0 – 30 days A/R Percentage over 90 days Bad Debt Percentage
$360,722 – 473,447 72 – 76% 96 – 98% 1.1 – 2.1 42 – 52 58 – 62% 21 – 25% 1.2 – 2.2%
EXPENSES Total Practice Expenses Overhead Percentage Payroll Medical Supplies & Drugs Business Supplies Office Space Laboratory Professional Liability Employee Benefits Equipment & Furnishings Outside Professional Services Promotion/Marketing
$215,992 – 283,490 58 – 62% 24 – 28% 3.6 – 4.6% 2 – 3% 6.4 – 7.4% 1.4 – 2.4% 1.8 – 2.8% 3.6 – 5.6% 1.2 – 2.2% 1.1 – 1.5% .3 – .5%
Specialty: 1 of 12 specialties shown here Region: National or 1 of 4 regions shown here PHYSICIAN COMPENSATION & BENEFITS Established Physician New Physician Compensation as % of Gross Charges Compensation as % of Collections Physician Benefits as % of Collections
$152,968 – 169,069 $115,050 – 140,617 34 – 38% 51 – 55% 5 – 7%
FINANCIAL RATIOS Operating Margin Liabilities Percentage Current Ratio
38 – 42% 3.4 – 4.4% 2.0 – 3.0
EMPLOYEE STAFFING & SALARIES Staff Ratio – Total Employees Staff Ratio – Billing & Collecting Staff Ratio – Nursing Receptionist RN Medical Assistant LPN Lab Technician Insurance Secretary Billing Clerk Medical Secretary/Transcriptionist Office Manager Administrator Physician Assistant Nurse Practitioner
3.3 – 4.3 .6 – 1.0 1.1 – 1.5 $22,280 – 26,250 $38,550 – 44,120 $23,600 – 27,725 $29,860 – 31,815 $29,450 – 37,850 $24,250 – 28,050 $26,820 – 31,680 $25,720 – 28,810 $43,646 – 47,646 $68,003 – 73,003 $72,922 – 80,598 $71,529 – 79,059
OTHER Total Active Patients Ambulatory Patient Visits per week Hospital Inpatient Visits per week New Patients per week Surgery Procedures per week Office Hours per week Physician to Population Ratio © 2007 Practice Support Resources, Inc.
1,931 – 2,574 98 – 118 7 – 13 10 – 15 6 – 10 36 – 40 1:4,000 2
DEFINITIONS Figures shown are per physician (one full time practicing physician by specialty). Accounts Receivable Ratio: Total accounts receivable divided by average monthly gross fee for service charges; also referred to as number of months of receivables outstanding. Adjustments Percentage: The amount not collected on fees for services due to contractual writeoffs, charitable adjustments, free services and other discounts divided by gross charges. Administrator: Is responsible for daily operations of a large group medical practice without clerical duties. Evaluates and makes decisions on marketing, financial planning, budgeting, capital and equipment needs; goals of the practice, accounting policies, physician compensation and reimbursement; planning and implementing computer information system; oversees other managers, department heads or supervisory personnel; manages quality control standards established by physicians; works with attorney, accountant and other professional services; managed care and third party payor contracting and negotiations; and usually reports to CEO, governing body or corporate directors. Salary ranges do not include administrators of groups with 35 or more FTE physicians. Ambulatory Patient Visits per Week: Number of total contacts between physician and patient where service or treatment is given. Includes mostly office visits but also emergency room, nursing care facility and patient home visits. It does not include in-hospital visits or surgery. Based upon average number of work weeks in a year for physician at 47 - 48. Annual Collections: The total receipts (collections) for patient services per physician. Does not include other practice income received. Annual Gross Charges: Charges billed by the physician practice for professional services including non-physician provider and ancillary services. Includes charges for technical components, drugs, injections, lab, radiology and diagnostic procedures. A/R Percentage 0 – 30 Days: Percent of total accounts receivable that are 30 days or less. This is determined from a practice’s accounts receivable aging report. A/R Percentage Over 90 Days: Percent of total accounts receivable that are past due by 90 days and over. Bad Debt Percentage: Bad debts (amounts written off as not collectible, turned over to collection agency, and amounts that represent losses from receiving less than was billed) divided by total adjusted charges (gross charges minus contractuals, professional, charity and other discounts). Business Supplies: Percentage representing the amount of expense for clerical and administrative supplies, books, subscriptions, forms, computer supplies, stationary & printing costs divided by total practice collections. Compensation as % of Collections (for physician’s services): The annual physician compensation amount divided by the total collections for the physician’s professional services (excluding collections for ancillary services, technical and other provider services). Note: This is not the same as Annual Collections.
© 2008 Practice Support Resources, Inc.
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Compensation as % of Gross Charges (for physician services): The annual physician compensation amount divided by the gross charges for the physician’s professional services (excluding charges for ancillary, technical and other provider services). Note: This is not the same as annual gross charges. Compensation Established Physician: The amount of profit, or collections minus operating expenses. This equates to the gross take home pay for one FTE physicians. Ranges represent mostly physicians in practice over two years. Compensation New Physician: This is an average range of compensation received for 1 FTE physician during his/her first year in practice. This does not include other additional production bonuses or compensation enhancements that may be offered. It should be noted that there are many practice situations (solo or group versus hospital based) which can vary the amount earned by new physicians. Current Ratio: Current assets amount as shown on balance statement of practice divided by current liabilities. Measures how cash received by practice covers cash needs of practice. Days Gross Charges in A/R: This is the number of days of charges that are in A/R. Total Account Receivable Annual Gross Charges á by 365. Employee Benefits: Percentage representing the amount of expense for employee payroll taxes, FICA, health and life insurance premiums, retirement or profit sharing divided by total practice collections. Employee Salaries: Average salaries and wages by position title. Equipment & Furnishings: Percentage representing the amount of expense for equipment rental, depreciation costs and maintenance of equipment and furniture divided by collections. Gross Collection Percentage: Annual collections (receipts minus refunds) on fees for services divided by annual gross charges. Note: The specific figures shown for annual collections and annual gross charges are overall ranges. Thus, dividing these exact figures do not calculate the range of collection percentages shown. Hospital Inpatient Visits per Week: Weekly visits made by physician to patients for history, exam or consultation as an inpatient. Lab Charges Percentage: Total charges for lab procedures in the physician practice (both professional & technical components) divided by the total gross charges for all services in the physician practice. Laboratory: Percentage representing the amount of expense for in-office lab supplies, minor equipment and outside service fees divided by total practice collections. Liabilities Percentage: Current liabilities (as shown on the balance sheet for a practice) such as payroll and payables that will be due and require payment from the practice assets within one year, divided by the total practice collections.
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STATS Comparison Worksheet - Sample How to use... 1. 2. 3.
4.
Choose which indicators you wish to measure Insert the practice’s actual figures Under the variance column, if the actual figures fall within the PSR benchmark range no variance is recorded. If the actual figures are below or above the range, then calculate the + or – difference and enter. Add comments regarding variance. Very important: PSR benchmark ranges with asterisks * are for one full time physician in the specialty. Thus, your actual figures should be for 1 Dr.
_____________________________ Physician Indicator
_____________________________ Medical Specialty
PSR Benchmark Range
Actual Practice Figures
Variance
$300,000-400,000
$250,000
-$50,000
Comments
Example One: Annual Gross Charges
This example shows a PSR Benchmark range of $300,000-400,000. The actual practice figure is $250,000. The variance calculates at $300,000 (the left side lower figure of the range) minus $250,000 (actual figure) = -$50,000 Variance This means the annual gross charges are below the range of all practices surveyed.
Example Two: Annual Gross Charges
$300,000-400,000
$410,000
+$10,000
This example shows the same PSR benchmark range of $300,000-400,000 with an actual practice figure of $410,000. The variance calculates at $410,000-400,000 (the right side higher figure of range) = +$10,000 Variance. This means the annual gross charges are above the average range of all practices surveyed.
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STATS Comparison Worksheet How to use... 5. 6. 7.
8.
Indicator
Choose which indicators you wish to measure Insert the practice’s actual figures Under the variance column, if the actual figures fall within the PSR benchmark range no variance is recorded. If the actual figures are below or above the range, then calculate the + or – difference and enter. Add comments regarding variance. Very important: PSR benchmark ranges with asterisks * are for one full time physician in the specialty. Thus, your actual figures should be for 1 Dr.
_____________________________ _____________________________ Physician Medical Specialty PSR Benchmark Actual Practice Variance Range Figures
Comments
Annual Gross Charges * Medicare Medicaid Other Insurance Self Pay Lab Charges Percentage X-ray Charges Percentage Adjustments Percentage Annual Collections * Gross Collection Percentage Net Collection Percentage Accounts Receivable Ratio Days Gross Charges in A/R A/R Percentage 0-30 days A/R Percentage over 90 days Bad Debt Percentage Total Practice Expenses * Overhead Percentage Payroll
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STATS Comparison Worksheet _____________________________ Physician Indicator
PSR Benchmark Range
_____________________________ Medical Specialty
Actual Practice Figures
Variance
Comments
Medical Supplies & Drugs Business Supplies Office Space Laboratory Professional Liability Employee Benefits Equipment & Furnishings Outside Professional Services Promotion/Marketing Compensation Est. Physician * Compensation New Physician * Compensation as % of Gross Charges Compensation as % of Collections Physician Benefits as % of Collections Operating Margin Liabilities Percentage Current Ratio Staff Ratio – Total Employees * Staff Ratio – Billing & Collecting * Staff Ratio – Nursing * Receptionist
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STATS Comparison Worksheet _____________________________ Physician Indicator
PSR Benchmark Range
_____________________________ Medical Specialty
Actual Practice Figures
Variance
Comments
RN Medical Assistant LPN Lab Technician Insurance Secretary Billing Clerk Medical Secretary/ Transcriptionist Office Manager Administrator Physician Assistant Nurse Practitioner Total Active Patients * Ambulatory * Patient Visits per week Hospital Inpatient Visits per week * New Patients per week * Surgery Procedures per week * Patient Visit Hours per week*
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