Given that each doctor typically specialized in one or two types of procedures, differences in surgical rates across doctors were primarily driven by the inherent time commitments of the surgeries.

Table A Number of Surgeries Performed by Physicians at MGOA, 1997–1999

Number of Surgeriesa Doctor 1997 1998 1999 Physician 1 0 1 208 Physician 2 1 28 196 Physician 3 437 470 536 Physician 4 26 357 374 Physician 5 175 219 233 Physician 6 292 313 258 Physician 7 74 103 113 Physician 8 46 111 161 Physician 9 137 131 185 Physician 10 26 30 26 Physician 11 67 90 107 Physician 12 43 59 88

Total 1,324 1,912 2,485

Source: MGOA internal documents. The exact data in the exhibit have been modified to prevent the identification of individual MGOA doctors. However, the patterns across doctors and over time have been preserved.

a Some types of surgery were more time-intensive than others. Given that each doctor typically specialized in one or two types of procedures, differences in surgical rates across doctors were primarily driven by the inherent time commitments of the surgeries.

Table B Charges and Payments Across Payer Types in 1999

Insurance Type Chargesa Collections Percentage of Charges

Actually Collected Private Insurance Blue Cross 9.4% 8.3% 34.6% HMO 47.5% 49.8% 40.8% All Other Private Insurance 9.7% 11.8% 47.7% Government Insurance Medicare 17.0% 13.0% 29.7% Medicaid 4.2% 2.3% 20.9% Other Workers Comp 7.1% 10.0% 54.9% Self-pay 5.2% 4.9% 36.8% Other 0.1% 0.1% 38.2%

Total 100.2% 100.2% 39.0%

Source: MGOA internal documents aCharges represent the list prices for procedures. However, essentially no patients or payers were charged list prices. Payments were the amounts actually received by MGOA from the payers and were based on pre-negotiated contracts between MGOA and the payers. The distribution of funds under charges roughly parallels the distribution of patients across different insurance types, while the amounts under collections reflect the distribution of revenues.

For the exclusive use of D. Chen, 2018.

This document is authorized for use only by Dongliang Chen in HRM 5030 Comp and Bens-1 taught by MATTHEW SAMEL, Johnson & Wales University from May 2018 to Nov 2018.

Performance Pay for MGOA Physicians (A) 904-028

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