2022 PA Bonus Calculation
There are a variety of ways to calculate compensation for PAs. One method is to use workRVU’s. Each service has a corresponding workRVU value with this calculation, and salary is determined once you know the workRVU total. Another way organizations calculate bonuses is on a percent of collections. When calculating bonuses in this way, it is essential to differentiate between the amount billed out and the amount collected. The amount billed out is much more significant than what insurances pay. When looking at RVUs, the compensation is generally in the thirty to forty dollar range per RVU. When looking at collections, bonuses are in the twenty to thirty percent range. Your location often determines the exact amount as the cost to practice and reimbursement varies.
Below is an example of a compensation package for a PA working in a nursing home:
CPT Code | Rate | est CPT% | Est Patient Visits | Est Comp |
99304 | $31.00 | 0% | 0 | |
99305 | $44.50 | 0% | 0 | |
99306 | $57.00 | 0% | 0 | |
99307 | $15.00 | 5% | 182 | $2,730.00 |
99308 | $23.50 | 40% | 1,459 | $34,286.50 |
99309 | $31.50 | 50% | 1,824 | $57,456.00 |
99310 | $46.50 | 5% | 182 | $8,463.00 |
99315 | $25.00 | 0% | 0 | |
99316 | $36.50 | 0% | 0 | |
99318 | $33.00 | 0% | 0 | |
Annual Compensation | $102,935.50 |
This compensation package is determined by the level of service, with a higher level of services being more value: higher reimbursement equates to higher pay for the PA. The estimate is that the PA will see mostly 99308, 99309, and 99310 services at this clinic. These CPT codes are for visits to a nursing facility.
The calculation for total estimated compensation in the case above is for fifteen patients a day. The actual types of patients seen and the number of patients in the nursing home can change the compensation amount.
Compensation for PAs usually includes a base salary, and in this offer, the base salary was $82,000. The base salary is far below the average for 2020, according to the AAPA salary report from last year. However, the bonus based on completed work will make up for the lower salary. Also, this position is flexible, as there are no appointments, like an outpatient clinic. You can come as you please, get your work done, and leave once the work is complete.
In this case, it would be worth it to negotiate a higher base salary as it is so low. One would want to ask how many patients you would realistically see, as this will change how busy you will be and the actual amount you will be compensated. As far as the compensation per visit type, this is comparable with other compensation packages I’ve seen in the past.
Employers calculate PA salary and bonuses in various ways. Compensation based on visit type is one way. When they base pay on this type of calculation, it is necessary to know how many patients you will see in a specified time and what type of patients they will be. It is also essential to know how long each patient visit will take. Although you want a fair base salary, you will ultimately be paid for your work through your bonus, making this compensation attractive to some PAs.
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Have you seen RVU used for PA’s in a surgical setting? I work in a practice where the PAs first assist and see follow up patients.
I have not, and it wouldn’t be great for the PA because much of what a surgical PA does is part of the global fee for the surgery. There is a lot of value to seeing follow up patients that does not show up in workRVUs. For example, it allows the surgeon to do other things instead of seeing follow up patients.