What Is Rvu Compensation

To calculate his or her total rvu for code 99214 add the following geographically adjusted component rvus together.

What is rvu compensation. The resource based relative value system rbrvs was established in 1992 by the health care financing administration predecessor of the centers. This measure of value is based on the extent of physician work clinical and nonclinical resources and expertise required to deliver the healthcare. Thus the total rvu for code 99214 is 3 4033 which makes sense given the fact that code 99214 denotes a more complex patient. Here s what you need to know about relative value units.

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. 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. Is a portion of your salary at risk if salary if a minimum production threshold is not met.

The compensation per work rvu rates are derived by dividing the total compensation for the physician by the physician s total 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. 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. 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. In the health industry compensation is based on the productivity of physicians. Simply put this metric is the product of total actual physician compensation divided by wrvu production. Work rvus are defined as non monetary units that measure the professional services a physician provides.

Rvu compensation is the most popular payment model. This statistic is perhaps the most misunderstood of the published compensation data and as a result is often misused in contract negotiations. The rvu based compensation model was designed to make physician compensation more predictable and to shelter physicians from unattractive payer mixes. 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. It is common for physicians employed by hospital groups and health systems to receive compensation in this way.