The following advice was provided to the question of whether a practice should use RVU’s as a basis for payment to a new doctor:
RVUs correlate to CPT Codes, which correlate to income.
RVUs are good for physiatry employees whose PM&R practice has low-reimbursing insurance carriers, like Medicaid. In this case, the lack of reimbursement will not unfairly penalize the physical medicine and rehabilitation employee who is working hard, but does not receive correspondingly high reimbursement. In other words, their RVUs will be high, but their reimbursement will not be as high.
But, all things being equal, RVUs translate to reimbursement.
RVUs only confuse the physiary employee. Using them is awkward, not well-understood, and confusing.
Better to stick to dollar incentives, which is understood by all.
This information was contributed by Bruno Stillo, CPA, MBA, Physiatry Billing Specialists, 800-835-4482,