# To carry out an analysis of costs, the management accountant must first calculate the average and marginal essay

Pattern Doctor RVU evaluation. prices per RVU. With the variety of RVUs required by the contract per CPT code identified, a administration accountant can calculate the whole common value and the whole marginal value per CPT code. She or he can use this info to assist the physicians make knowledgeable selections. Instance of Calculations Assume that in 2016, XYZ P.C.s prices had been historic \$672,000 when 10,000 RVUs had been produced and \$782,000 when 12,000 RVUs had been produced. Step 1. a) Calculate the common and marginal prices per RVU. Y2 – Y1 = \$782,000 – \$672,000 = \$110,000 X2 – X1 = 12,000 RVUs – 10,000 RVUs = 2,000 RVUs b) Calculate the variable value per unit Price distinction divided by manufacturing distinction = \$110,000 ÷ 2,000 RVUs = \$55 per RVU c) Calculate the whole mounted prices. Fastened Prices = \$782,000 – (\$55 * 12,000 RVUs) = \$782,000 – \$660,000 = \$122,000 d) Calculate complete prices Complete mounted prices + (variable value per RVU instances variety of RVUs). Complete = \$122,000 + (\$55 * 12,000 RVUs) =\$122,000 + 660,000 = \$782,000 e) Calculate common value per RVU The common value per relative worth unit is set utilizing the projected variety of RVUs for the coming month within the above method. For instance, if in the course of the coming month it's anticipated that the follow will generate 11,000 RVUs, the common value can be as follows: Common value per RVU = ÷ 11,000 RVUs = \$66.09 per RVU. The marginal value per RVU is just the variable prices or \$55.00 per RVU. Step 2. Decide the variety of RVUs required by the contract per CPT code: For instance, the contract could state that a explicit CPT code permits six RVUs. Step three. Calculate the whole common value and the whole marginal value per CPT code. The associated fee per process is the price per RVU instances the variety of relative worth models allowed per process. For instance, if a process permits six RVUs then the common value for the process can be 6 * \$66.09 = \$396.55, and the marginal prices can be 6 * \$55 = \$330.00. Step four. Help the physicians in utilizing these prices appropriately to make knowledgeable selections. The administration accountant may help the doctor group make knowledgeable monetary selections about potential contracts. The character of the choice will rely upon whether or not it's a PPO or HMO contract into account. -research paper writing service
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