Let us measure physician productivity.

THE OLD SCHOOL

• Productivity was determined based solely on generation of charges or revenue with no allowance for expenses
• So, compensation and fringe benefits was also based solely on generation of revenue without fairly considering value without considering costs
• Even measuring patient volume did not consider the issue of expense

THE NEW SCHOOL

• Productivity, while still considering revenue, must also consider expenses
  
• Revenue can be measured three ways:
GROSS COLLECTIONS
COLLECTIONS OR RECEIPTS
GROSS PROFIT

• Expenses can be measured three ways:


Tracked contribution (residency training, administrative work, etc.)
Time – Motion studies
RBRVS (relative based resource value system) database