Introduction

While the size of the practice will dictate your policies, every office should periodically review their procedures. Do you know what your time is worth? Do you know the extent of your overhead costs? According to Dr. Tom Hicks (a family practitioner and the Medical Director of Patients First, Tallahassee) an excellent, simple calculation is to take your overhead costs and divide by the number of patients seen (or number of procedures accomplished). This gives you a known amount (sans professional costs) to use in evaluating contract reimbursement rates. What percent of your practice does patients from each MCO represent? If 20% of your practice is with a particular HMO, what will you do when the HMO cuts your fees? With a large number of patients from one MCO, you reduce your ability to cancel or renegotiate a contract. Who reviews and understands MCO contracts in your office?