Activity-Based Cost Analysis
Many medical business decisions are little more than guesses -- unless the decisions are based upon a detailed knowledge of medical production costs. RVU Wizard’s Activity-Based Cost Analysis uses patent-protected processes to allocate provider production costs across RBRVS-defined production. This knowledge of medical procedure costs and profits informs and empowers physicians and health care executives, which results in improved operational and strategic decision-making.
Client Experience: A client medical group presented with opportunities for major expansions of services that included several medical directorships, used RVU Wizard's Activity-Based Cost Analysis to determine clinical services costs related to those expansions. Actual activity-based production costs and projected relative value units (RVUs) service volumes were used as the basis for medical directorship agreements -- assuring fair, empirically-substantiated physician compensation.
Strategic Data Management and Business Analysis
Collection, organization, analysis, and presentation of data are essential prerequisites to effective operational and strategic planning. RVU Wizard’s experience in the development, presentation, and use of health care and business data can efficiently and cost-effectively put the power of information in your hands. Whether you need specific reports or extensive planning portfolios — RVU Wizard can deliver the information.
Client Experience: A medical group's opportunity for major growth required significant investments in physician recruitment, facilities expansion, and reasonable medical directorship contracting. RVU Wizard provides customized analyses and reports that articulated the parameters of feasible expansion based on actual operating costs and prevailing reimbursements. The quantifications of costs and margins were used to stage the expansion of group services, structure financially feasible physician recruitment contracts, and negotiate fair medical directorship agreements for the new services.
Payer Fee Schedule and Margin Analysis
Many providers erroneously believe that payers have an overwhelming advantage in fee schedule negotiations. Actually, providers have greater access to relevant data, but often lack the resources needed to translate those data into valuable negotiation information. Payer Fee Schedule and Margin Analysis allows the comparison of reimbursement rates to actual service production costs for the unique mix of services provided to a payer’s beneficiaries— thereby determining the specific margin attributable to a payer’s business. RVU Wizard is experienced in supporting empirically-substantiated rate negotiations and successful in gaining justified adjustments.
Client Experience: A medical group was dissatisfied with prevailing collections, but uncertain about which payers or services were responsible for the unsatisfactory performance. RVU Wizard determined the group’s production costs and margins by procedure and by payer. Empowered by the knowledge of their actual production costs and payer margins, the group developed reasonable rate adjustment requests for targeted payers -- that were readily approved.
Physician Productions and Compensation
Physician production and performance measurements are some of the most complex and sensitive areas of medical services management. Reliable, valid data are cornerstones of physician performance measurement. RVU Wizard is experienced in the measurement of physician production, including the development of provider compensation plans designed to achieve complex organizational performance objectives such as fairness, efficiency, productivity, collaboration and clinical excellence.
Client Experience: A large medical group needed a fair and acceptable basis for valuing the efforts of physician partners who wanted to transition between full-time and part-time effort. After initial discussions broke down into contentious differences of perspectives, RVU Wizard’s affiliate, Medical Business Analytics, was engaged to develop a valid, multi-attribute, empirical measure of physician effort. The dynamic measures and methodology that were developed have been used to value physician efforts since 2005 with unanimous, uncontested support of all partners.