Increase in Compensation Bonus Based on workRVU for PA
The company I work for is having an increase in compensation per workRVU for PAs in 2019. There is a compensation committee that determines production bonus pay for PAs and NPs. They use annual market surveys from the MGMA to determine the rates.
Based on data from the previous years the compensation went up for PAs. This does not necessarily mean all PAs in the company will get a raise to their base salary. However, with the increase in compensation per workRVU, if you billed out the same amount of workRVUs as the previous year your bonus would be more.
Compensation based on workRVU can be a little confusing. The first thing you need to know is what an RVU is; in short, it is a value of the work that a provider does to take care of a patient. Each procedure or office visit is assigned an RVU based on the complexity of the task; for example, a level 3 office visit is worth .97 workRVU.
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If you’re paid based on workRVU you’ll want to know how much you get paid per workRVU. If you have a base salary and the bonus is based on workRVU you’ll want to know how many workRVU you have to generate in order to reach the bonus level.
Tier rates under a production bonus program for the calendar year 2019
| Compensation 50th%ile |
Production 50th%ile |
Comp/ wRVU 50th%ile |
|
| 2018 | $111,597 | 3380 wRVU | $33.02 |
| 2017 actual | $109,226 | 3424 wRVU | $31.90 |
| %increase | 2.20% |
The data above shows the 50th percentile for compensation for PAs, our bonus program is based off these numbers. We are compensated $33.02 per workRVU that we generate. If we generate above the 50th percentile than we are compensated at a higher amount; if we generate more than the 3380 workRVU we will be given more dollars per workRVU.
It can be a confusing calculation but the bottom line is that we will be earning 2.2% more per workRVU that is generated. In the grand scheme of things this means we only received a 2.2% pay raise, which is not even keeping up with inflation. Last year we saw data that suggested PA and NP salaries plateauing and this further confirms that information.
Compensation based on workRVU can be a great way to be compensated for the work that you do. However, if you work in a specialty like surgery where you are doing work that is not reflected in workRVUs than it might not be the best. If you are compensated based on workRVU it is important that you know the numbers and have a good understanding of the calculations. If you don’t completely understand how it is calculated you should ask someone in your organization to better explain it so you can have clear understanding of how your compensation is calculated.
Are you compensated based on workRVU? Did you see and increase in compensation for 2019? Please comment below the original post, sign up to receive future posts by email and share with your friends! Don’t forget to sign up for a free PANCE or PANRE review course from Rosh Review.
