Comments on: The High-Performance Physician http://blog.srssoft.com/2009/04/the-high-performance-physician/ From Evan Steele, CEO SRSsoft Sun, 05 Feb 2012 06:12:33 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Charles F. Scholhamer, Jr., M.D. http://blog.srssoft.com/2009/04/the-high-performance-physician/comment-page-1/#comment-59 Charles F. Scholhamer, Jr., M.D. Thu, 09 Apr 2009 13:44:52 +0000 http://blog.srssoft.com/?p=215#comment-59 What you describe in your last blog has an embedded managerial accounting reason. High volume practices with ancillary services understand that most medical practices utilize high operating leverage. So......they have a high contribution margin for many of their services. So...... say a 5% increase in revenues leads to say a 14-15% increase in net operating profit. So..... a 20% increase in profit can lead to a 50% increase in net operating profit. But leverage can work against you as well. So.....if an EHR decreases productivity, you can see a significant drop in profit. 50% drop for 20% drop in revenues. So..... why would a high volume practice risk losing that kind of money trying to implement a system with unproven or worse proven built in lose of productivity!!! Charles F. Scholhamer, Jr., MD, MBA What you describe in your last blog has an embedded managerial accounting reason. High volume practices with ancillary services understand that most medical practices utilize high operating leverage. So……they have a high contribution margin for many of their services. So…… say a 5% increase in revenues leads to say a 14-15% increase in net operating profit. So….. a 20% increase in profit can lead to a 50% increase in net operating profit. But leverage can work against you as well. So…..if an EHR decreases productivity, you can see a significant drop in profit. 50% drop for 20% drop in revenues. So….. why would a high volume practice risk losing that kind of money trying to implement a system with unproven or worse proven built in lose of productivity!!!

Charles F. Scholhamer, Jr., MD, MBA

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