What Is Rvu Compensation

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

What is rvu compensation.

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. Here is the median compensation and work rvu for 28 specialties in 2015 which is based on. Rather rvus define the value of a service or procedure relative to all services and procedures. Thus the total rvu for code 99214 is 3 4033 which makes sense given the fact that code 99214 denotes a more complex patient.

The rvu based compensation model was designed to make physician compensation more predictable and to shelter physicians from unattractive payer mixes. Rvu compensation is the most popular payment model. Here s what you need to know about relative value units. 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.

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. This statistic is perhaps the most misunderstood of the published compensation data and as a result is often misused in contract negotiations. The compensation per work rvu rates are derived by dividing the total compensation for the physician by the physician s total work rvu.

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. It is common for physicians employed by hospital groups and health systems to receive compensation in this way. What is the physician actual compensation per work rvu. Let s start with a definition.

In the health industry compensation is based on the productivity of physicians. Work rvus are defined as non monetary units that measure the professional services a physician provides. This measure of value is based on the extent of physician work clinical and nonclinical resources and expertise required to deliver the healthcare. Many independent physicians don t pay attention to wrvus because they work under different physician compensation models.

Rvus or relative value units do not directly define physician compensation in dollar amounts. The resource based relative value system rbrvs was established in 1992 by the health care financing administration predecessor of the centers.