What Is Rvu Compensation

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.

What is rvu compensation.

Compensation per rvu upon reaching multiple established thresholds. Work rvus are defined as non monetary units that measure the professional services a physician provides. Rather rvus define the value of a service or procedure relative to all services and procedures. Rvu compensation is the most popular payment model.

It is common for physicians employed by hospital groups and health systems to receive compensation in this way. Thus the total rvu for code 99214 is 3 4033 which makes sense given the fact that code 99214 denotes a more complex patient. Simply put this metric is the product of total actual physician compensation divided by wrvu production. 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.

Rvus or relative value units do not directly define physician compensation in dollar amounts. Let s start with a definition. Work rvu 1 50 x 1 057 practice expense rvu 1 43 x 1 165 malpractice rvu 0 10 x 1 518. Is a portion of your salary at risk if salary if a minimum production threshold is not met.

Many independent physicians don t pay attention to wrvus because they work under different physician compensation models. Here is the median compensation and work rvu for 28 specialties in 2015 which is based on. To calculate his or her total rvu for code 99214 add the following geographically adjusted component rvus together. What is the physician actual compensation per work rvu.

The rvu based compensation model was designed to make physician compensation more predictable and to shelter physicians from unattractive payer mixes. This measure of value is based on the extent of physician work clinical and nonclinical resources and expertise required to deliver the healthcare. 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. In the health industry compensation is based on the productivity of physicians.

Here s what you need to know about relative value units. This statistic is perhaps the most misunderstood of the published compensation data and as a result is often misused in contract negotiations.