Provider Productivity

Productivity can be measured by comparing the relationship of revenue to consumption of resources or expense. Productivity, while still considering revenue, must also consider expenses. Productivity is not revenue alone, expenses alone or work effort alone. It is important to measure financial volume and expenses in three ways. Financial volume is the combination of gross charges, collections or receipts and profits. Gross charges put more burden on the fee schedule and measures fee schedule discrepancies. Collections take into account the efficiency of billing and collecting, considers A/R, can identify areas of non-compliance and/or coding problems, and hold physicians accountable for these processes. Profit looks at what.s left after all expenses are considered. Expenses are tracked contribution, time-motion studies and the RBRVS database. Tracked contributions require the ability to track expenses by physician. Time-motion studies are complex, expensive and variable in design. The RBRVS is a good research model. It has been standardized within the industry, simple and inexpensive to use, is a relational model and works well within closed system, and excellent for measuring moving dynamics within the practice.