Physician Network Revenue Cycle


Over a three-week period, HSG performed a complete audit of an employed physician network consisting of over 120 providers, 90 of whom were physicians. It was operating at an annual loss of approximately $18M. Based on the assessment, the largest contributors to that loss were:

  • Low physician productivity as measured by Work RVUs (wRVUs)
  • Failure to enforce provider compensation provisions tied to production, and wide variation in provider base wages
  • Operational inefficiencies stemming from many small practices, often in adjacent locations
  • Ineffective use of technology
  • Inadequate management of the revenue cycle
  • Inability of management to meaningfully impact the issues above
  • Over-dependence on licensed nursing staff

How HSG Helped

HSG found seven opportunities to improve the bottom line performance of the network and reduce physician practice losses by an estimated $5M over two to three years:


Provider Productivity

$ 1.8 to $2.5M

Physician Compensation

$ 2.6M

Site Consolidation

$ 800,000+

Revenue Cycle Improvement (Collections)

Range $2 – 9M

Revenue Cycle Improvement (Chargemaster)

$ 1.2M

Nursing Staff

$ 560,000

Meaningful Use



Several major recommendations were made to reach this goal. When providing dramatic and sometimes long-term change, HSG is available to work with a client to prioritize and/or implement recommendations.


Client satisfaction with the operational assessment was so high, it resulted in a request for a proposal to implement the assessment recommendations.

HSG divided the implementation process into three phases over a twelve-month engagement:

  1. Address revenue cycle issues and update the current manpower plan;
  2. Address the functional and strategic structure of the physician network, adopt needed changes to the data environment and develop solutions for the low productivity of network physicians; and
  3. Assist with the introduction of operational enhancements and monitor results.


Neal D. Barker

Partner and Managing Director, Compensation and Compliance