Can't understand compensation model in contract

[lodine]

I've been trying to understand the terminology in my contract and I can't seem to understand the whole bit. Hoping someone can help!

"Compensation shall be equal to the number of wRVU's resulting from services personally and directly performed by physician multiplied by the conversion factor (defined below) but in no case less than 25% of the MGMA median salary for physicians speciality"

"Conversion Factor shall mean a rate expressed in dollars per wRVU derived as follows: If physician's wRVU production is at or below the MGMA 75th percentile for a 12 month period, the rate is the MGMA median salary divided by the MGMA median wRVU production for physicians speciality."

Thanks.

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[st2205]

I've been trying to understand the terminology in my contract and I can't seem to understand the whole bit. Hoping someone can help!

"Compensation shall be equal to the number of wRVU's resulting from services personally and directly performed by physician multiplied by the conversion factor (defined below) but in no case less than 25% of the MGMA median salary for physicians speciality"

"Conversion Factor shall mean a rate expressed in dollars per wRVU derived as follows: If physician's wRVU production is at or below the MGMA 75th percentile for a 12 month period, the rate is the MGMA median salary divided by the MGMA median wRVU production for physicians speciality."

Thanks.

Sounds like they're saying MGMA median salary for your specialty divided by the median number of wRVUs for your specialty (don't have this number) is giving you the amount of money per RVU you'll get, assuming you're not hitting 75%ile of RVU generation in a year.

As a hypothetical, let's say MGMA median salary is 200k and MGMA median RVU per year is 4,000. So you're getting $50 per wRVU. So if you generate 3,000 wRVUs in one year, your salary is $150,000.

 

[doc05]

Get some real numbers in the contract. MGMA data is very comprehensive and "median" as well as percentiles vary considerably based on region. What specialty?