Chapter 3 Index

A. The Business of Private Practice
--Interviewing for Private Practice
--Negotiating Contracts for Pediatric Practice
--Managed Care
--Managed Care: A Second Look
--Money Pressures in Pediatric Practice

Checklist to Consider When Buying a Machine for Your Office Laboratory (POL)

Reminder
#1: Most machines should pay for themselves in 12-18 months.
#2: Always check with managed care company before buying machine!

1.  Do you feel that having the test in your POL will improve delivery of medical care to your patients?

2.  What are the expenses of having another machine: Calculate/day cost:

a.  Cost of Machine/day _______________

b.  Maintenance Cost of machine - 10% x purchase price/year _______________

c.  CLIA costs to be considered for inspection _______________

d.  Proficiency Testing costs _______________

e.  Personnel costs - if Med Tech: about $45,000/year_______________

f.  Space costs - will vary with rent and size of machine _______________

g.  Reagent, Control, Calibration costs ______________

h.  Will you have to change venting, other safety issues to have this machine; if so, what will be the cost _______________

3.  What income do you think you might generate from this machine?

*a. Reimbursement per test: ____________________________

b.  Number of tests anticipate doing per day: _______________

c.  Total reimbursement = Reimbursement/test x # tests/day: _______________

d.  Drawing fee per test @ $3.00/test x # tests _______________

e.  Actual reimbursement per day _______________

f.  Difference in cost/reimbursement $___________/day

*Need to calculate managed care reimbursement, Medicaid or Medicare reimbursement, private insurance reimbursement, and decide what percentages of each apply to your practice.

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All rights reserved.

Department of Pediatrics  |  Medical College of Georgia
Please email comments, suggestions or questions to:
John T.  Benjamin M.D.,  jbenj@mcg.edu

February 27, 2004