Imagine a physician performs a mole removal procedure in the office. If the cost of supplies needed for that procedure is $100 and the reimbursement for the procedure is $1,000, the mole removal procedure seems profitable
However, what if the procedure takes more than an hour to perform, and the same physician could render four standard office visits during that hour and be reimbursed $1,200 (with no costs for supplies)? Would you suggest the physician perform more mole removals or concentrate on standard office visits?
For the mole removal, the physician earns $900 for 1 hour. For standard office visits, the physician earns $1200 for 1 hour. The hour spent for standard office visits is more profitable than the hour spent on the mole removal; therefore, the physician may wish to concentrate more on seeing standard office visits.
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