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Fundamentals for using the wRVU in your comp plan

Work relative value units (wRVU) + practice ex-penses (PE) + malpractice expenses = Total RVUs. Although this Medicare formula, used to pay millions of providers, is a bone of contention for some because the values (and subsequent payments) are often lower than the cost for the provider to do the work, using the RVU as a productivity measure may work well. Using the RVU as a performance measure for your compensation plan can incentivize and motivate physicians to produce (and earn) more. How-ever, before you can effectively employ this type of comp plan, you need to understand what it means, in which setting it works best, and how to apply it.

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