A large non-profit health system was contemplating an acquisition of a medical practice. The health system projected physician group compensation of approximately $3.8 million under the proposed productivity model. As part of Stout’s analysis, we processed the provider’s CPT® code information in the Provider Production Calculator™ and noted our wRVU calculations were approximately 22% higher from those calculated by the health system. We quickly identified that the health system’s calculations did not properly account for certain CPT® code modifiers. As a result of properly incorporating the impact of all modifiers, the revised proforma compensation for the physician group increased to approximately $4.7 million.
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