RVU physician compensation model

RVU Compensation For Physicians

I'm often asked about compensation modeling, especially during these times when there are continued pressures on physician practice net income. Many practices, especially those owned by hospitals, are moving to some sort of a RVU-based compensation model. If you are looking at this type of model, here is what I see as the most common one out there:

Base salary consistent with expected MGMA production

RVU target consistent with expected MGMA production and salary (based on physician work RVUs)

5-10% risk corridor either way

Physician gets a bonus of x% of base where X is the amount that total RVUs exceed RVU target, except that no bonus is payable if total RVUs are within risk corridor

Base salary is increased or decreased in following year by Y% where Y is the amount by which physician's annual total RVU's exceeded or failed to meet the target, outside of the risk corridor

Following year's RVU target is = to current year's total (actual)

Considering a RVU-based compensation model for your medical practice?

As a CPA specializing in medical practice management, I can help you navigate these complex decisions to optimize your practice's financial health. Contact REED TINSLEY, CPA today to discuss how we can tailor a compensation model that suits your practice's needs and ensures sustainable growth

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.