What are the three components into which resource costs are divided?

The correct division of resource costs is into physician work, practice expense, and professional liability insurance. This categorization is essential for understanding how healthcare costs are structured and where expenditures occur within a medical practice.

Physician work refers to the efforts of healthcare providers in treating patients, which includes the time and skill involved in direct patient care, diagnosis, and treatment planning. This component accounts for the labor provided by physicians and reflects the complexity and intensity of the services rendered.

Practice expense encompasses the overhead costs associated with running a medical practice, including office space, utilities, administrative support, and medical supplies required to provide patient care. Understanding these expenses is vital for assessing the financial health of a practice and for reimbursement models that aim to fairly compensate healthcare providers.

Professional liability insurance is critical in the healthcare field, as it protects physicians and practices from legal claims arising from patient care. The cost of this insurance is a necessary consideration in the overall resource costs since it can significantly impact the finances of a medical practice.

This detailed understanding of resource costs helps in budgeting, financial planning, and establishing fair reimbursement guidelines within the healthcare system.