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As revenue generators, NPs must be aware of how their work contributes to the ov

ID: 2488942 • Letter: A

Question

As revenue generators, NPs must be aware of how their work contributes to the overall revenue of the clinical practice. You see 20 patients per day on average, and take call every third weekend. According to Buppert (2011), an NP who sees 15 patients per day at $56 per patient visit, on average, brings in $840 per day. Allowing 1 week off for continuing education, 1 week off for illness, and 4 weeks off for vacation, this NP will bring in $193,200 a year, potentially. However, not all bills are paid. With a 90% collection rate—a reasonable collection rate for an efficient practice—this NP actually will bring in $173,800 per year. An NP who sees 24 patients per day will bring in $1344 per day, or $309,120 per year in accounts receivable. With a 90% collection rate, this NP will bring $278,208 to the practice (Buppert, 2011). In this scenario, what are you “worth” to the practice? Use logical reasoning and provide evidence based rationales for your decisions. Keep in mind that your negotiation terms and conditions must be within the legal scope of practice for an ANP.

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Explanation / Answer

( Assumption 52 weeks, 364 days a year)

According to Buppert,

Fee per patient = $56

Total Working Weeks = (52-1 week of eductaion- 1 week for illness- 4 week for vacation) = 46 weeks

Total Revenue = (No. Of patient/day*Fee per patient*46 weeks*7 days) = 15*$56*46*7 =$270480

Revenue bring = $193200

Net Cost/patient = (Total Revenue - Revenue Bring)/15*46 week*7days

= ($270480 - $193200)/4830

= $16

Fee per patient = $56

Total Working Weeks = (52-1 week of eductaion- 1 week for illness- 4 week for vacation) = 46 weeks

Total Revenue = (No. Of patient/day*Fee per patient*46 weeks*7 days) = 24*$56*46*7 =$432768

Revenue bring = $309120

Net Cost/patient = (Total Revenue - Revenue Bring)/24*46 week*7days

= ($432768 - $309120)/7728

= $16

Our Worth

Fee per patient = $56

Total Working days = (52*7 - 17) = 347 days

1 call in 3 week hence (52/3 Round off) i.e. 17 days

Total Revenue = (No. Of patient/day*Fee per patient*347 days) = 20*$56*347 =$388640

Net Cost/patient = $16/patient

No. Of Patient in year = 20*347 = 6940 patients

Total Cost = $16*6940 = $111040

Revenue Bought = $388640 - $111040

= $277600

Net Worth of us = $277600*90%

= $249840