Question: 1 Assume that a primary care physician performs only mental examinations. However, there are four levels of exams: A , B , C , and

1 Assume that a primary care physician performs only mental examinations. However, there are four levels of exams: A, B, C, and D. An RVU analysis indicates that a level A exam requires 10 RVU's, level B requires 20 RVU's, level C requires 30 RVU's, and level D requires 40 RVU's. The total cost to run the practice is $1,000,000 annually. The number of exams administered annually are 10,000 for A,8,000 for B,6,000 for C, and 4,000 for D.
a) using RVU methodology, what is the estimated cost per type of exam?
b) If the goal of the practice is to earn a 20% profit margin on each examination, how s the exams be priced?
c) If the goal of the practice is to earn a 40% profit margin on each examination, how s the exams be
 1 Assume that a primary care physician performs only mental examinations.

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