Editor's note: This is Part 9 of a 12-part series focused on optimizing medical group financial performance. Each brief in this series takes 2 to 3 minutes to read and identifies specific actions medical groups can take to achieve sustainable financial improvements.
Assessment
Provider pay per paid wRVU is a metric that evaluates compensation relative to expected revenue. Establishing target values and quantifying the financial opportunity requires analyzing three key data points:
- The organization’s current specialty-specific pay per wRVU for physicians and APCs.
- Regional specialty-specific benchmarks for pay per wRVU for physicians and APCs. Consider cost-of-living differences where applicable.
- The organization’s specialty-specific net revenues per wRVU for physicians and APCs.
Setting a target for provider pay per wRVU involves balancing competitiveness in recruitment and retention with financial sustainability. Several factors influence this decision, including geographic location, market dynamics, and the organization’s reputation. Strengthening financial performance through broader optimization efforts can help mitigate the challenge of maintaining this balance.
The financial opportunity is calculated by multiplying the difference between actual and targeted provider pay per wRVU by the total wRVUs generated by each provider.
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