A new model for nurse practitioner
utilization in primary care: Increased
efficiency and implications
Nan Liu
Stacey R. Finkelstein
Lusine Poghosyan
Background: Nurse practitioners (NPs) play an important role in providing quality primary care. However, little is
known about organizational processes that best utilize NPs in care delivery and what kind of resources and
support NPs need to deliver quality care within their organizations. In primary care settings, NPs often receive
little support from ancillary personnel compared with physicians.
Purpose: The aim of this article was to compare the productivity and cost efficiency of NP utilization models
implemented in primary care sites with and without medical assistant (MA) support.
Methodology/Approach: We develop queueing models for these NP utilization models, of which the parameters
are extracted from literature or government reports. Appropriate analyses are conducted to generate formulas
and values for the productivity and cost efficiency. Sensitivity analyses are conducted to investigate different
scenarios and to verify the robustness of findings.
Findings: The productivity and cost efficiency of these models improve significantly if NPs have access to MA
support in serving patients. On the basis of the model parameters we use, the average cost of serving a patient can
be reduced by 9%Y12% if MAs are hired to support NPs. Such improvements are robust across practice
environments with different variability in provider service times. Improving provider service rate is a much more
effective strategy to increase productivity compared with reducing the variability in provider service times.
Practice Implications: To contain costs and improve the utilization of NPs in primary care settings, MA assistance
for NPs is necessary.
P
olicy makers and many other stakeholders are con-
stantly searching for ways to reduce the cost of
health care delivery while increasing timely access
and providing high-quality patient care. The U.S. health
care system does not rank highly among the health care
systems of developed countries, mainly because of its high
cost and poor outcomes (Murray & Frenk, 2010; Schoen,
Osborn, How, Doty, & Peugh, 2009). Although costs are
steadily increasing, delays in receiving high-quality care
continue to be a challenge in the United States. For exam-
ple, 32% of Medicare beneficiaries and 31% of privately in-
sured patients had an unwanted delay in obtaining an
appointment for routine care in 2008 (Medicare Payment
Advisory Commission, 2009). In addition, the average wait
time for a new patient to obtain an appointment to see an
internist was 31 days in 2008 in Massachusetts (Massachusetts
Medical Society, 2008). Finally, a 2009 survey shows that
Key words: cost-efficiency, nurse practitioner, primary care,
productivity, queueing theory
Nan Liu, PhD, is Assistant Professor, Department of Health Policy and
Management, Mailman School of Public Health, Columbia University,
New York. E-mail: nl2320@columbia.edu.
Stacey R. Finkelstein, PhD, is Assistant Professor, Department of
Health Policy and Management, Mailman School of Public Health,
Columbia University, New York. E-mail: sf2559@columbia.edu.
Lusine Poghosyan, PhD, MPH, RN, is Assistant Professor, Columbia
University School of Nursing, New York. E-mail: lp2475@columbia.edu.
The authors have disclosed that they have no significant relationship
with, or financial interest in, any commercial companies pertaining to
this article.
DOI: 10.1097/HMR.0b013e318276fadf
Health Care Manage Rev, 2014, 39(1), 10Y20
Copyright B 2014 Wolters Kluwer Health | Lippincott Williams & Wilkins
10 JanuaryYMarch & 2014
Copyright © 2014 Wolters Kluwer Health | Lippincott Williams & Wilkins. Unauthorized reproduction of this article is prohibited.