PubMed · 2002 · 13 citations · 0 references
Social SciencesEconomicsHealth Care ManagementHealth EconomicsHealthcare EconomicsRevenue ManagementEconomic EvaluationHealth Care Expenditure AnalysisHealthcare Cost AccountingHealthcare Cost AnalysisPhysician EconomicsPhysician Practice EconomicsMedical Cost AnalysisOverhead Expense AnalysisPhysician Allocation EfficiencyPhysician Practice CostsPhysician Practice EfficiencyPhysician Practice OverheadPhysician Service ExpenditureResource Use Estimation
Using the optimizing properties of econometric analysis, this study analyzes how physician overhead costs (OC) can be allocated to multiple activities to maximize precision in reimbursing the costs of services. Drawing on work by Leibenstein and Friedman, the analysis also shows that allocating OC to multiple activities unbiased by revenue requires controlling for revenue when making the estimates. Further econometric analysis shows that it is possible to save about 10 percent of OC by paying only for those that are necessary.