The case study our group will be presenting on is Bandon Medical Associates (BMA), a small physician group practice based in Oregon founded by Dr. Delgado and a colleague about 20 years ago. The small practice is unfortunately, facing a serious budget crisis in excess of $145k, when the senior physician and others believed there would be a surplus of nearly $100k. With this unforeseen quandary, BMA will not be able to procure new equipment that is in high demand or pay physicians their anticipated annual bonuses. Our goal is to analyze the perplexity of how BMA could possibly be facing a deficit of $145k and present our findings after carefully reviewing their financial processes and overall budget. BMA is comprised of six physicians, medical assistants as extenders and during the times of high demand, additional physicians and medical assistants. BMA has been successful over the years and developed a reputable reputation within in the community. Several years age. BMA joined Coos Bay Health System which is a large integrated delivery system encompassed primary care & multi-specialty group practices, free-standing laboratory, a free-standing radiology unit, two acute care hospitals, a nursing home, a home health agency, and a hospice. In addition to these services being provided, Coos Bay is a primary service provider in negotiating third party contracts in which BMA allocated a portion to Coos Bay. One problematic area that raised concern was lowering the rate of one of the group’s visit types in addition to other problematic areas within the physician group practice. BMA’s physicians are paid a base salary and a bonus. There are a variety of methods used to establish physicians pay rates. For example, if a psychiatrist is joining a new practice, annual pay scales may be set according to the national average for psychiatrists and bonuses might then be paid based on the individual psychiatrist's income to the practice compared to...
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