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Am I Understanding MGMA Correctly?

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  • Am I Understanding MGMA Correctly?

    Numbers used are for example only to make things easier to interpret.

    Considering change in jobs, would be joining a 'new' practice that is part of a larger healthsystem. Once on production the $/RVU is tiered. 30$ for first 4000 RVU, $40 for next 1000 RVU, and $65 for every additional RVU.

    Their 'presentation' to justify this states. 50th percentile RVUs are 6000 and 50th percentile compensation is 225000. Therefore a physician with our group that produced 6000 RVU will be paid 225000.

    Compensation is on a K1. Health insurance premiums 10k. Automatic 12% to retirement account.
    My understanding when MGMA surveys are completed that if I was 'paid' 225,000 and had the retitement and health insurance premiums taken out as above then my MGMA compensation would be 197,990 based on this website:

    So I would actually be making less than the 50th percentile. Is this accurate?
    Suggestions on how to broach this subject? With the size of the healthsystem I find it hard to believe they don't understand this difference.
    Normally it probably wouldn't matter because their top tier $/RVU is good but given its a new practice with multiple newer providers I am concerned about compensation the first few years when the lower RVU tiers have more of an impact.

  • #2
    I read the MGMA definitions. Yes, the K-1 explanations are confusing. When they say minus box and then follow with a narrative, I can’t tell the objective.
    Apples to apples comparison would be the goal.
    • Total Medicare wages – this includes on-call compensation;
    • On-call compensation – included in total Medicare wages;
    • 401(k);
    • Life insurance; and
    • Any other pre-taxed deductions (Employee contributions).
    Do not include:
    • Expense reimbursements;
    • Fringe benefits paid by the medical practice;
    • Flex spending accounts (FSA);
    • Health insurance; or
    • Employer contributions.
    When you look at only these definitions, winning an a correct interpretation of a survey will be difficult. The question is whether the total compensation and benefits are competitive.
    I doubt you would get a raise. You might ask, it is a legitimate clarification request.


    • #3
      Make sure you are comparing apples to apples.

      To calculate his or her total RVU for code 99214, add the following geographically-adjusted component RVUs together: (Work RVU [1.50] x 1.057) + (Practice expense RVU [1.43] x 1.165) + (Malpractice RVU [0.10] x 1.518)

      The MGMA survey reported national median RVUs of 4,928 in family medicine, 4,698 in internal medicine, and 4,902 in pediatrics.

      You should concern yourself with Work RVUs, which is different than total RVUs

      So if you work like the Average physician you will get $120000 + 40000 , or $160000

      Keep in mind you dont produce RVUs when you are off, ie vac, holiday, weekend, CME

      I typically see close to 8000 wRVUs a year, but I also see alot of patients on average, compared to others in the practice. I would consider myself busier than average, not by choice but this is the way it worked out.

      The number of $30/ wRVU seems low.