What Is Rvu Compensation

Rvus or relative value units do not directly define physician compensation in dollar amounts.

What is rvu compensation.

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. 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. Work rvus are defined as non monetary units that measure the professional services a physician provides. Let s start with a definition.

It is common for physicians employed by hospital groups and health systems to receive compensation in this way. 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. 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.

In the health industry compensation is based on the productivity of physicians. This measure of value is based on the extent of physician work clinical and nonclinical resources and expertise required to deliver the healthcare. Here is the median compensation and work rvu for 28 specialties in 2015 which is based on. 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. Many independent physicians don t pay attention to wrvus because they work under different physician compensation models. 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 statistic is perhaps the most misunderstood of the published compensation data and as a result is often misused in contract negotiations. Here s what you need to know about relative value units. Compensation per rvu upon reaching multiple established thresholds. Is a portion of your salary at risk if salary if a minimum production threshold is not met.

The rvu based compensation model was designed to make physician compensation more predictable and to shelter physicians from unattractive payer mixes. Work rvu 1 50 x 1 057 practice expense rvu 1 43 x 1 165 malpractice rvu 0 10 x 1 518.