Cost analysis can help a group practice increase revenues.
Undertaking a cost analysis to determine the cost of providing specific services can help group practices negotiate increased payment and identify areas for cost reduction. An OB/GYN practice in Pennsylvania undertook a cost analysis using the resource-based relative value system. Using data from the cost analysis, the practice was able to negotiate increased payment for some of its services. The practice also was able to target some of its fixed costs for reduction. Another result of the analysis was that the practice was able to focus marketing efforts on some of its most profitable, elective services, thereby increasing revenues. In addition, the practice was able to reduce the provision of unprofitable services.
Migliore
Sherry
S
smigliore@consultpmsco.com
D000043:Abstracting and Indexing / Q000145:classification; D019985:Benchmarking; D003365:Costs and Cost Analysis / Q000379:methods*; D017598:Efficiency, Organizational / Q000191:economics; D005251:Fees, Medical; D005260:Female; D005376:Financial Management / Q000379:methods*; D006123:Group Practice / Q000191:economics* / Q000458:organization & administration; D006176:Gynecology / Q000191:economics*; D006801:Humans; D007182:Income; D008389:Marketing of Health Services; D009774:Obstetrics / Q000191:economics*; D010414:Pennsylvania; D011357:Product Line Management; D015895:Relative Value Scales