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Ethics Practice: Doctors Mobey, Oak, and Chesterfield

Doctors Mobey, Oak, and Chesterfield have been in a group practice for several years. Mohey and Oak are family practice physicians, and Chesterfield is a general surgeon. Chesterfield receives many referrals for surgery from his family practice partners. Upon the partnership's original formation , the three doctors agreed to a two-part formula to share income. Every month each doctor receives a salary allowance of 3,000. Additional income is divided according to percent of patient charges the doctors generated for The groups income for the month is 50,000. Chesterfield has expressed dissatisfaction with the income sharing formula and asks that income be split entirely on patient charge percents
1. Compute the income allocation for the current month using the original agreement.
2. Compute the income allocation for the current month using Chesterfield's proposed agreement.
3. Identify the ethical components of the partnership decision for the doctors.

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Solution Preview

Q1 & 2: The computation of the income split is in excel, attached. I assumed a particular patient charge ratio and you can change that ratio (based on what data you have) and the amounts will updated.

3. Identify the ethical ...

Solution Summary

Your tutorial gives you two ethical considerations and a spreadsheet that computes the income split based on an assumed patient charge ratio.