The RVU formula is:
RVU = Work (technical skill) + Practice Expense/Overhead + Malpractice Cost x a Conversion Factor
A physiatry billing consultant advises against RVU-based reimbursement arrangements if possible. However, it seems to me a logical extension for entities to use RVU compensation as it reflects the formula used by Medicare to pay them.
An example of a RVU-based salary formula is:
RVU + Value (Achievement of Performance Criteria) + Advanced Practice Supervision + Other revenues
Some RVU incentive examples are $30/RVU after contract minimum (65th percentile for academic centers is around 5800 RVUs for 1 FTE). For an outpatient job in New England, the RVU reimbursement is $40/wRVU over 5100.
For an interventional job in New England, the RVU reimbursement is $40/wRVU over 5400.
For an inpatient/outpatient job in the Midwest, the reimbursement is $56/wRVU.
Another example is in the Midwest, there there are 3 tiers. Tier 1 is for 1 – 4,523 wRVU with $51.40 paid/wRVU. Tier 2 is 4,524 – 5,815 wRVU with $52.99 paid/wRVU. Tier 3 is 5,816+ wRVUs with $54.63 paid/wRVU.
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