Compensation Model

The CRS Divisional shareholder compensation system is comprised of two (2) elements:

 

A. Colorectal Practice Retainage calculation

Recorded on a CRS Division basis.

Profit/Retainage is each physicians' Allocated Net Revenue less Allocated Expenses

 

1. YTD Net Revenue is allocated based on YTD Production (proportionate

share of professional cash receipts)

2. YTD Expense are allocated 20% equally and 80% production

 

B. Ancillary Service Retainage calculation

 

CRS Division will receive ancillary credits for the below services during the reporting

period at any TxO facility

 

Patients that receive chemotherapy treatments

 

Patients that receive radiation treatments

 

CT and MRI scans ordered

 

Laboratory and Pathology services ordered

 

CRS Division will allocate ancillary credits to each shareholder 50% equally and 50% based upon the shareholder’s relative portion of new patients with cancer

 

Allocate the provider retainage pool and technical retainage pool to each surgeon shareholder according to the CRS Division shareholder compensation system to determine total compensation as illustrated below.