In this assessment, you will evaluate the physicians’ practice financial condition based on the following Relative Value Unit (RVU) calculations and analysis:
You will be graded based on your understanding of the calculations, the accuracy of your calculations, the validity of your conclusions and your ability to clearly communicate your analysis. To complete this assignment, follow these steps:
*Please use headings for each paragraph and category to decipher the discussion and organize the paragraphs.
Use the following assumptions:
Assume that during the FY2016 year, Lovely Life LLC historical costs were $750,000 when 11,000 RVUs were produced and $950,000 when 14,000 RVUs were produced. The contract specifies that the number of RVUs per service CPT code are five (5).
High Total Fixed Costs
#RVUs high point
Low Total Fixed Costs
#RVUs low point
#RVUs per CPT
Projected #RVUs for the coming month
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