Reference no: EM131865799

Northeast Medical Group, a family practice, has the following financial data and operational metrics:

Number of physicians                 5

Total revenue                              $2,748,360

Total operating costs                  $1,557,615

Total procedures per physician 12,353

Patients per physician                 1,941

Visits per physician                      5,333

A. What is the group's revenue per physician?

$2,748,360 / 5 = $549,672 is the revenue per physician

B. What is the group's operating cost per physician?

$1,557,615 / 5 = $311,523 is the operating cost per physician

C. What is the group's total operating profit?

$2,748,360 - $1,557,615 = 1,190,745 total operating profit

D. What is the group's profit per physician?

$1,190,145 / 5 = $238,029 profit per physician

Profit per patient?

$238,029 / 1,941 =$122.63 profit per patient

Profit per visit?

$238,029 / 5,333 = $44.63

Profit per procedure?

$238,029 / 12,353 = 19.26

E. Assume that the group plans to reinvest $50, 000 of its profits in the practice.

(It plans to buy a new EKG machine.) Also, assume that the remainder of profits will be distributed equally to the group's physicians as salary. What compensation will each physician receive?