APMA News - January/February 2022 - A2

Continued from Page 1
predict that a physician can produce
5,500 wRVUs annually, then their salary
would be $220,000 per year (5,500
x $40). The physician therefore has
two ways to change their salary-either
produce more wRVUs within a year or
negotiate a higher conversion rate. The
purpose of this model is to encourage
physicians to be highly " productive "
because it will have a direct impact on
their compensation.
HOW RVUs ARE AWARDED
Additional considerations related to the
wRVU model are if the compensation is
based on what a physician bills or what
the physician collects given that these
two can often be much different numbers.
Because physicians typically only
collect a portion of what is billed, a model
that is based on collected RVUs could
result in much lower productivity annually.
Another consideration with a wRVU
model is that employers will sometimes
discount the physicians' RVUs based on
how the employer is paid by the payer.
For example, third-party payers may pay
only a discounted rate for certain procedures
that are performed bilaterally. This
discount is then passed on to the physician,
resulting in lower RVUs awarded
than what may be expected. These
aspects regarding how RVUs are awarded
can vary from contract to contract and
should be something the physician
understands clearly. Physicians should
Respond to 2022 MGMA surveys to access this
important data for free, which will help you in
your next salary/contract negotiation:
* Compensation and Production:
January 3-February 11
* Cost and Revenue: February 28-April 8
Look for updates in your inbox when these surveys launch!
ensure they receive a monthly or quarterly
report of the RVUs they have been
awarded to avoid surprises. For an initially
cautious physician, it may be
prudent to keep track of their own billing
on a monthly basis and cross-check this
information with their employer's log of
what they have billed. This approach
may allow the physician to either identify
discrepancies or allow a better understanding
of how their RVUs are awarded.
OPINION: NEGOTIATING
THE CONVERSION RATE
Oftentimes the conversion rate is predetermined
by the employer as a standard
rate for the physicians' specialty (typically
based on MGMA data); however, this
scenario could be an avenue for negotiation
in some circumstances. Negotiating
the conversion rate, although possible,
can be difficult given these rates are typically
determined using national data. A
physician would need a good argument
regarding why their rate should be higher
than average, which is often difficult
Expectations Meet Reality:
Residency Training During
COVID-19
Sriya Babu, DPM
F
ive years ago, when I started podiatric
medical school, I had certain
expectations and goals for residency:
I would be eager to start something
new, make a difference, and showcase
our profession in a positive manner.
Fast forward to the present, and as a
YOUR APMA / PAGE 2
second-year resident, my interest
in foot and ankle surgery
continues to grow, and I
strive to promote the podiatric
profession while pursuing my
career goals.
Continued on Page 4
to prove if the physician offers the typical
skill set that is expected. Nonetheless, it
is not unheard of to negotiate a higher
conversion rate with strong supporting
arguments. A physician may want to
consider if they possess a skill set
not currently offered by their healthcare
system which could bring in higher
revenue (e.g., a new emerging procedure,
minimally invasive techniques,
specialized wound care). Physicians
who are consistently highly productive in
a health-care system in comparison to
their peers are often rewarded with a
higher conversion rate. Additionally, if
a physician is particularly well-respected
in the medical community, they can
be used in marketing efforts to attract
new patients to the system and may
therefore warrant a higher conversion
rate; however, this avenue should be
used cautiously and in the most conservative
way possible to avoid appearing
arrogant and should therefore be
reserved for only experienced, seasoned
physicians.
APMA News - January/February 2022

Table of Contents for the Digital Edition of APMA News - January/February 2022
