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Conversion from multi group to Hospital employment with wRVU Otolaryngology

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  • Conversion from multi group to Hospital employment with wRVU Otolaryngology

    I am in the process of joining a growing hospital system in a rural state. As an otolaryngologist I as being offered a salary with benefits conversion rate of $38 per wRVU and this is based on 10900 wRVU annual billed. Any suggestions? I am looking at AGMA with the administrator but they are not using MGMA. Is it worth joining the MGMA site and getting that data?

  • #2
    Have you had an attorney review the contract? WCI recommendations provide MGMA as part of the package. I personally used Resolve and had a great experience.

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    • #3
      I would say no to the MGMA data. The reason is that it won’t slice and dice to the level you need.
      I would see if you can get production data specific to the hospital. Total compensation at 25/50/75/90 and wRVU’s for a region (like 12 states) is all you will get. A contract review might help. If they are sharing AMGA , does it seem fair?
      Another survey will only comfort you in a wide range.

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      • #4
        That seems like a crummy wRVU conversion rate, if you asked me.

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        • #5
          I’m a graduating ENT resident and have a few friends who just signed hospital employed contracts.

          That conversion rate sounds really low. The conversion factors I was seeing for jobs varied from 50-60s with some with high 60s depending on location. 10k rvu is also a really high target, average is close to 7k if I’m not mistaken so you should be making much more than that for that kind of production.

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          • #6
            10k wRVU's is too high in my opinion. Crazy actually. Lots of really busy ENT's I know don't hit that. 75th percentile MGMA for Otolaryngology is 8800 wRVU's in 2019.

            $38/RVU is low as well for employed ENT position but could be ok depending on benefits you get with part you don't keep - I've been told average collections for hospital-based ENT (which I am) is $72/RVU. So you're keeping more than half. So what are you buying with that difference - admin staff, nursing, clinic space, equipment, billing, malpractice?

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            • #7
              I would get the mgma data just so you can ballpark the wrvu/yr and $/rvu. Frankly, wrvu seem really high, wrvu otoh, really low...which means theyre really taking you at both ends, which is concerning as a starting point.

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              • #8
                Our Np makes 40/rvu.. just saying. But sometimes people “convert” their rvus in different ways based on whether than includes benefits, additional income streams, ect

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                • #9
                  The wRVU expectation is high, greater than 75th percentile of MGMA. The rate per wRVU is very low, way less than 25th percentile, the median is approximately double. Best practice for a wRVU model is to create a structure that aligns compensation and productivity. The basic equation to achieve this involves setting the wRVU threshold (point at which you begin earning incentive) by dividing the base salary by the rate per wRVU. For example, if your Base salary is $450,000 and your rate per wRVU is $60, your wRVU threshold is 7,500. If you produce 10,000 wRVUs, your compensation should equal $600,000 (10,000 wRVUs x $60 per wRVU).
                  Jon Morris, JD, MBA - Founder/Principal
                  www.mdcompadvisor.com

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