As revenue generators, NPs must be aware of how their work contributes
to the overall revenue of the clinical practice. You see 20 patients per
day on average and take call every third weekend. According to Buppert
(2011), an NP who sees 15 patients per day at $56 per patient visit, on
average, brings in $840 per day. Allowing 1 week off for continuing
education, 1 week off for illness, and 4 weeks off for vacation, this NP
will bring in $193,200 a year, potentially. However, not all bills are
paid. With a 90% collection rate—a reasonable collection rate for an
efficient practice—this NP actually will bring in $173,880 per year. An
NP who sees 24 patients per day will bring in $1344 per day, or $309,120
per year in accounts receivable. With a 90% collection rate, this NP
will bring $278,208 to the practice (Buppert, 2011).
Establishing a salary can be a challenge for NPs. Deducting 40% of the
NP’s gross generated income for overhead expenses (rent, benefits,
continuing education, supplies, malpractice, lab expenses, and
depreciation of equipment) leaves $104,280 for the 15-patient-per-day NP
and $166,925 for the 24-patient-per-day NP. Further deducting 15% of
that figure to pay a physician for consultation services leaves $88,638
in salary for the 15-patient-per-day NP and $141,887 in salary for the
24-patient-per-day NP. Deducting 10% for employer profit leaves $79,775
in salary for the 15-patient-per-day NP and $127,699 for the
24-patient-per-day NP (Buppert, 2011).
What salary would you propose for the contract renewal? How does your
salary proposal fit in with the community standard for an NP in a
similar practice? Use logical reasoning, and provide evidence based
rationales for your decisions. Keep in mind that your negotiation terms
and conditions must be within the legal scope of practice for an ANP.
Buppert, C. (2015). Nurse practitioner’s business practice & legal
guide (5th ed.). Retrieved from https://bookshelf.vitalsource.com
• Chapter 5—Prescribing
• Chapter 6—Hospital Privileges
• Chapter 7—Negligence and Malpractice
• Chapter 8—Risk Management
• Chapter 9—Reimbursement for Nurse Practitioner Services
• Chapter 10—The Employed Nurse Practitioner
Porter-O’Grady, T., & Malloch, K. (2015). Quantum leadership:
Building better partnerships for sustainable health (4th ed.). Retrieved
from https://bookshelf.vitalsource.com
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