3 Uses for the Provider Utilization & RVU Analysis Data

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The Provider Utilization & RVU Analysis Data subscription is massive with 687,000 healthcare professionals.  Here are three real uses for the data.

1. Normalized Compensation-to-Collections Ratios

The ratio of Work-to-Total RVUs is probably the single most useful physician compensation ratio.  This ratio represents the physician compensation component (“Work”) of total reimbursement (“Total RVUs”) for any given physician service or aggregated group of physician services.  It is an excellent proxy for normalized compensation-to-collections ratios.

The BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements introduced the Earnings-Based Compensation method for calculating the physician compensation component of physician reimbursement.  The authors’ premise is that market pricing for physician services is already built into physician reimbursement paid by commercial and government payors in every market.  It is merely an arithmetic calculation to adjudicate the physician compensation component (“Work”) of total physician reimbursement (“Total”) based on the actual ratio of Work-to-Total RVUs for the actual services performed.

While using actual Work-to-Total RVU ratios for actual billed physician services provides the most technically accurate calculation, physician billing records with all modifiers and site of service indicators are not always available.  Sometimes physicians are moving to a new market, sometimes they are serving as temporary locum tenens, and sometimes they are negotiating compensation for a job with a new employer while still working for another employer.  The Provider Utilization & RVU Analysis Data calculates these normalized compensation-to-collection ratios for 155 specialty groups in 112 geographic markets.  It is a good reference when actual billing data is not available.

2. Normalized Professional-to-Global Billing Ratios

Specialties involving lots of imaging and testing services like Diagnostic Radiology, Pathology, Interventional Cardiology, Interventional Radiology, Radiation Oncology, and Vascular Surgery can bill for physician service reimbursement separately under professional billing, or globally, with one bill including both professional and technical services.

This can mean the difference between a 22% radiology compensation-to-collections ratios under a global billing and a 70% radiologist compensation-to-collections ratio for just the professional interpretation service bill.  The Provider Utilization & RVU Analysis Data provides Work-to-Total RVU ratios for both global and professional-only billing scenarios for Diagnostic Radiology, Pathology, Nuclear Medicine, Interventional Cardiology, Interventional Radiology, Radiation Oncology, and Vascular Surgery with adjustments for all 112 U.S. geographic markets.

3. Locum Tenens Compensation

Locum Tenens are healthcare professionals who work on a temporary basis for physician groups and hospitals.  If you are going to negotiate a percentage of collections compensation arrangement in advance, which is customary, then the Provider Utilization & RVU Analysis Data provides Work-to-Total RVU ratios for 155 specialty groups in all 112 U.S. geographic markets.  Again, the ratio of Work-to-Total RVUs is the same as a normalized compensation-to-collections ratio.