Even though a physician may do a service, provide a service to a patient if theyre being compensated via net-collections. And I think the average physician has about. For instance, lets say a gastroenterologist works as an employee at the hospital. Learn everything you need to start your own private practice. Therefore, understanding RVUs can be complex, but its important to know, at the very least, the basics of how this type of compensation is determined. Well, as I said at the beginning, it depends upon the setting for the physicians. The nearly 10% reduction in the conversion factor from $36.09 in 2020 to $32.41 in 2021 then was modified by the Consolidated Appropriations Act of 2021, which pumped $3 billion more into funding physician services, mitigating some of the effects of the conversion factor decrease. I wish I had a black and white answer, but it depends. Medicare physician payment schedule - American Medical Association in work RVUs and compensation per work RVU by specialty group relative to primary care tend to be somewhat smaller. Conversion rates and wRVUs by CPT code are adjusted at the end of every year for the following year. The other big benefit of this payment model is that its an easy system for practice management to administer. Theres also the notion that the published median ($56.55 in Table 1) is really what most physicians are being paid per wRVU. Youre not building up a practice. What are the most common types of physician compensation models? Thats how much physicians will make in their careers. Hospitals that dont offer any compensation other than wRVUs are likely to see their best physicians move on to find new employers. Or maybe the office theyre opening up is contingent upon you being there. % Some specialties will make a little bit more in their careers than others. And then 240,000 in year two is the income guarantee. The compensation per work RVU (wRVU) ratio increased to 10.82 percent which is a significant increase from the 2.14 percent the year prior, the release says. And today Ill talk specifically about how a base salary plus productivity model would work. I would say that a different compensation model is net collections-based, primarily from physician-owned groups from smaller practices.