Dear Resident, Do you Understand Relative Value Units (RVUs)?

Measuring physician productivity with work RVUs:

News flash! Physicians are more interested in medicine than coding.

No doctor undertook the rigors of medical school in order to be an expert coder. But, when residency ends, some physicians will find themselves looking at employment contracts in which their compensation will be determined in part by productivity.  Often, the first two years will be strictly salary-based but will transition in all or part based to compensation based on productivity in the third year.

• Physicians who work in health care organizations may find that their “work productivity” is measured in relative value units.
• For physicians with these types of contracts, here is an explanation of RVUs.

How is productivity measured?  Work RVUs.

Skip this section if you understand RVUs.  Everyone else, read on.

Physician services are paid based on the fee associated with a CPT^® code.

The CPT^® code (developed by the American Medical Association) describes what was done, such as a new patient visit, a well child check or an appendectomy.