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New wRVU values skew certain compensation plans
One of the most popular models hospitals use when employing physicians is an income distribution plan (IDP) based upon work relative value units (wRVU). Even in private groups, wRVUs are a good way to "level the playing field" by helping compare one physician's production to another's.
In most settings, the wRVU model is used primarily to derive compensation in conjunction with a multiplier, also known as a conversion factor. For the model to be successful, the key is to derive a fair and accurate conversion factor. In a private group, wRVUs are also important because of the total value that each wRVU carries, commensurate with its associated CPT code.