In a 2- to 3-page Word document that includes tables and/or calculations, make recommendations on the following: 1) number of physicians and nurse practitioners needed; 2) reimbursement method: salary or fee-for-service; 3) recommendations for financial incentives to address the challenges of supplier-induced demand and how to ensure efficiency. Interpret the net profit from the ACO contract based on your recommendations. Explain the rationale behind your recommendations, including the impact made by your financial calculations.

full question is not given above like financial figures

Following question sloved from taking own assumptions to slove

ACO revenue:

Number of ACO patients 20,000

Potential savings:

Number of avoidable hospitalizations per patient 0.1

Total avoidable hospitalizations per year 2,000

Cost per avoidable hospitalization $10,000

Total cost of avoidable hospitalizations $20,000,000

Demand for healthcare/utilization:

Number of office visits per patient 6

Total office visits per year 120,000

Supply of workforce/expense:

Employed providers (salary)

Physician salary per year $200,000

Nurse practitioner salary per year $100,000

Contracted providers (fee-for-service)

Physician fee per visit $100

Nurse practitioner fee per visit $50

Productivity:

Physician visits per year 3,000

Nurse practitioner visits per year 2,000

Financial incentives:

Salary bonus to ensure efficiency 10%

Bonus fee per visit to ensure efficiency $1

Sum is sloved by taking above figures

Total ACO Patient is exxpected to be hospitalized 20000-2000=18000.

1 ACO Patient is needed 6 visits then total no. of visits in a year to patient = 20000*6=120000

No. of Physician Needed:

Per Physician Visit 3000 per year. Total Visit is 120000 per year. So 120000/3000=40 Physicianc needed to visit per year

No. of Nurses Neede

Per Nurse visit is 2000 per year. total visit is 120000 for hospitalized ACO Patients. so 120000/2000 = 60 nurses needed for 120000 visits.

Salary for Physician per year per physician is given $200000
If Salary is not given and fees per visit is given then per physician fees is $100 per visit and one physician will visit 3000 times per year. so toal fees of once physician for one year will come to 3000 x $100 = $300000

So better to give salary to physicians.

Salary to nurses is given $100000 per year. and if fees is paid then $50 per visit will be paid and number of visit is 2000 per year. so total fees will come to 2000 x 50$ = $100000. Both option is same. But if salary is given then 10% efficiency bonus will be paid which will come to $100000 x 10% = $10000 then total salary payment with bonus = $110000 and if fees is paid then $1 bonus for efficiency is paid and total visit is 2000 so bonus will be $2000 and total fees will come to $100000+$2000=$102000 so Fees method is suitable

Total Saving for avoidable hsopitalization = $20000000 half of which is saving for hospital only and rest is for insurer.