What Is Rvu Compensation

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

What is rvu compensation.

Work rvus are defined as non monetary units that measure the professional services a physician provides. This statistic is perhaps the most misunderstood of the published compensation data and as a result is often misused in contract negotiations. It is common for physicians employed by hospital groups and health systems to receive compensation in this way. Is a portion of your salary at risk if salary if a minimum production threshold is not met.

Work rvu 1 50 x 1 057 practice expense rvu 1 43 x 1 165 malpractice rvu 0 10 x 1 518. Compensation per rvu upon reaching multiple established thresholds. Here s what you need to know about relative value units. Rather rvus define the value of a service or procedure relative to all services and procedures.

Rvu compensation is the most popular payment model. The rvu based compensation model was designed to make physician compensation more predictable and to shelter physicians from unattractive payer mixes. The resource based relative value system rbrvs was established in 1992 by the health care financing administration predecessor of the centers. 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.

Thus the total rvu for code 99214 is 3 4033 which makes sense given the fact that code 99214 denotes a more complex patient. Many independent physicians don t pay attention to wrvus because they work under different physician compensation models. 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. Rvus or relative value units do not directly define physician compensation in dollar amounts.

To calculate his or her total rvu for code 99214 add the following geographically adjusted component rvus together. Let s start with a definition. What is the physician actual compensation per work rvu. Here is the median compensation and work rvu for 28 specialties in 2015 which is based on.

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. Simply put this metric is the product of total actual physician compensation divided by wrvu production.