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Northeast Medical Group Case Study

7.7 Northeast Medical Group, a family practice, has the following financial data and operational metrics: Number of physicians 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?
• b. What is the group?s operating cost per physician?
• c. What is the group?s total operating profit?
• d. What is the group?s profit per physician? Per patient? Per visit? Per procedure?
• e. Assume that the group plans to reinvest $50,000 of its profits in the practice. (It plans to buy a new EKG [electrocardiogram] machine.) Also, assume that the re mainder of profits will be distributed equally to the group?s physicians as salary. What compensation will each physician receive?