What Is Rvu Compensation

In the health industry compensation is based on the productivity of physicians.

What is rvu compensation.

Is a portion of your salary at risk if salary if a minimum production threshold is not met. Rvus or relative value units do not directly define physician compensation in dollar amounts. Many independent physicians don t pay attention to wrvus because they work under different physician compensation models. This means that the physician whose total compensation is reported at the 90 th percentile does not necessarily mean he she is earning a 90 th percentile compensation per wrvu rate.

Work rvu 1 50 x 1 057 practice expense rvu 1 43 x 1 165 malpractice rvu 0 10 x 1 518. It is common for physicians employed by hospital groups and health systems to receive compensation in this way. Simply put this metric is the product of total actual physician compensation divided by wrvu production. What is the physician actual compensation per work rvu.

Let s start with a definition. Rvu explained explanation of relative value units we have listed everything you will need to know about rvu including the differences between rvu and wrvu. The resource based relative value system rbrvs was established in 1992 by the health care financing administration predecessor of the centers. The compensation per work rvu rates are derived by dividing the total compensation for the physician by the physician s total work rvu.

Productivity by rvu the most common use of productivity the relative value unit rvu system is often used by owners of medical practices to measure physician productivity and to set compensation. The rvu based compensation model was designed to make physician compensation more predictable and to shelter physicians from unattractive payer mixes. Every year the medical group management association mgma releases a survey that reports the average physician compensation by specialty region and a variety of other factors. This statistic is perhaps the most misunderstood of the published compensation data and as a result is often misused in contract negotiations.

Rvu compensation is the most popular payment model. Here s what you need to know about relative value units. Thus the total rvu for code 99214 is 3 4033 which makes sense given the fact that code 99214 denotes a more complex patient. To calculate his or her total rvu for code 99214 add the following geographically adjusted component rvus together.

Compensation per rvu upon reaching multiple established thresholds. This measure of value is based on the extent of physician work clinical and nonclinical resources and expertise required to deliver the healthcare.