CHAPTER 7: SERVICE LINE COSTING AND PRICING
Homework 3.3, Chapter 7
Assume that a primary care physician practice performs only physical examinations, with three different levels, depending upon the depth and complexity of each procedure. An RVU analysis determined the required RVUs for each procedure as indicated below. The total costs to run the practice, including diagnostic, as well as the annual projected number of procedures for each level are also listed below.
						Procedures	RVU's	# Procedures
						Level I	25	3,000
						Level II	30	1,500
Level III	45	750
Total procedures		5,250
Total costs	$800,000
a. Using RVU methodology, what is the estimated cost per RVU?
Cost per RVU
b. What is the estimated cost per type of procedures?
	Cost/Procedure
Level I
Level II
Level III
c. Based on the cost per procedure, what is the estimated annual cost for each procedure?
	Total Costs
Level I
Level II
Level III
TOTAL