3. Finances, income and incentive payments
A. Tracking business income
11:30am - Eliza receives an email from a GP interested in working in the practice. They have requested a 70% split and 6 weeks holiday per year.
Ask Eliza:
- Things to consider before determining a new doctor's split
- Important points about insurance payments
- Tracking doctor billings
Watch the interview:
Dr John Aloizos: Negotiating splitsWatch the interview:
Dr David Chambers: GP income choicesClick 'Next' to continue.
3. Finances, income and incentive payments
B. Tracking business costs
12:00pm - Eliza is ordering some new stock for the practice.
"Practice management involves making sensible purchasing decisions and having a handle on the financial profitability of the practice."
Watch the interview:
Dr John Aloizos: Income and different hats to wearActivity:
Define the financial termsClick 'Next' to continue.
3. Finances, income and incentive payments
C. Managing cash flow
12:30 - Eliza checks the practice’s finances. There is a balance of $62,345 in the operations account. This includes the most recent incentive payment of $17,500.
"Most practices will need at least $60-$100K in working capital. "
Ask Eliza:
What is the difference between cash flow and income?Activity:
Paying taxAsk Eliza:
Preventing Medicare fraudRead the news story about:
Practice managers plead guilty to Medicare fraudClick 'Next' to continue.
3. Finances, income and incentive payments
D. Medicare funded incentives
1:00pm - Eliza receives a statement from the Office of Medicare showing the recent PIP payment of $17,500.
"It looks like this doesn't include any payment for pap smears because we didn't reach the required threshold this quarter."
Activity:
How much do you know about PIP payments?Ask Eliza:
- What is the Practice Incentive Program (PIP)?
- What are Standardised whole patient equivalents (SWPEs)?
- What are the different PIP types?
- Other incentives
- Disbursement of payments
Activity:
Increase the number of pap smearsClick 'Next topic' to continue.
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