The top diagnoses are hypertension, heart failure and hyperlipidemia. Finally, your incentive bonus will only be successful if both parties understand how it works. PA and NP productivity in the Veterans Health Administration. 40-50% is reasonable from the business owners perspective. However, there are many advantages to pursuing a doctor of nursing practice (DNP). Sign up to our email list for updates on the newest articles and courses! Have extensive ER nursing experience. A national survey of nurse practitioners' patient satisfaction outcomes. Careers. Now lets assume the practice collected $2,000,000 in net receipts for the year. Is it reasonable to ask for $32 per RVU even with the benefits I am currently receiving? I just got introduced to your page by a friend who has a booming private practice in San Antonio Texas. For now, an MSN is still sufficient. Your email address will not be published. So, if you generate $30,000 one month to the practice, you would earn your negotiated percentage of that number. Minimum Qualifications. Outpatient care centers: $123,850. Recent research shows that in the past decade, the relative growth of nurse practitioners (NPs) and physician assistants (PAs) in community health centers (CHCs) has far exceeded the growth of physicians (Ku & Bysshe, 2015).Studies also show that there is wide variation across different types of organizations in their productivity (Xue & Tuttle, 2017), CHCs in particular (Park et al., 2020). How much should the percentage be? What are the benefits of hourly pay or salary? Seems reasonable. JBI Database System Rev Implement Rep. 2015. 7304, 7401 through 7464, Ty. Physician owners need to think critically about how they structure compensation plans for mid-level providers. So if youre saying Im generating a value to the practice of $32 per RVU, if I hit 2656 RVUs per year (my salary of $85k / $32 per RVU) then every RVU over 2656 should be received in a form of bonus at $32 per RVU? Physicians have for years recognized the value provided by physician assistants (PAs), nurse practitioners (NPs), and other nonphysician practitioners (NPPs) to enhance their practices'. When I started I was told I would have the opportunity for productivity incentives after 1 or 2 years. From my experience, smaller practices generally pay by collections because of its simplicity. Things get messy when the formula gets too complicated. Medicare, the leader in determining payment for medical services, assigns each diagnosis and procedure a CPT (Current Procedural Terminology) code. For the visits that you dont get paid anything, I would advise being compensated at least 1 RVU for your time as it helps the doc be more productive. (2020, January 16). The work of adapting the model will be presented in this article. From here we can also calculate the operating profit margin. The Elite Nurse Practitioner is accredited as a provider of nursing continuing professional development by the American Nurses Credentialing Centers Commission on Accreditation. Meaning if the percent of collections does not exceed salary, then the NP owes the company the difference ?? Once you hit that, you are paid a straight bonus of $32 per RVU. 2019;67(6):707-712. Does this seem reasonable or should I ask for a higher base? If it is a high overhead clinic, I believe 40%-50% is reasonable or ask for RVUs. Please enable it to take advantage of the complete set of features! You earn $32 per RVU, once your base of $129k is met, every $32 RVU earned after that is then paid out as a bonus. Required fields are marked *. They only list the salary amount and how many hours it is based on. How would you negotiate RVU for quarterly bonuses? The relative value unit: History, current use, and controversies. If you can get a large percentage of collections such as 60%-70% then go for it. I own a Family Nurse Practitioner clinic and am looking to hire another NP. official website and that any information you provide is encrypted She thinks the 5000 number is high. Disclaimer. I am paid hourly at $48.41. National Library of Medicine Keep this in mind. This website also contains material copyrighted by 3rd parties. The site is secure. The specific steps in the process of measurement, operational definitions for work activities, and calculations are provided. I have never seen two contracts with the same language regarding productivity-based bonuses, and I have reviewed at least 300 nurse practitioner and physician contracts during the past 20 years. And if so, is it based on collections? The patients pay a monthly fee for unlimited services so a productivity bonus is out. So, before you negotiate this rate, try to guesstimate what their overhead is. Medicare, the leader in determining payment for medical services, assigns each diagnosis and procedure a CPT (Current Procedural Terminology) code. My salary was better than working in a bigger city 2 years ago (new NP), but averages now are 103-108K. Hey Justin, I have been a NP for 1 year now. Alabama Average RN Salary: $61,920 Average Hourly: $29.77 Number of RNs in Alabama: 49,780 49. Your email address will not be published. In this case, the operating expense ratio would be: Operating Expense Ratio = 1,320,000 / 2,000,000 = 66%, This tells us that for every $1.00 of collections the practice spent $0.66. This formula also works with employee physicians. Am I generating much revenue? Experience is also a critical factor. Unauthorized use of these marks is strictly prohibited. Mid-level providers, such as nurse practitioners and physician assistants, are in high demand. Cite this: How Much Productivity Bonus Should I Ask For? The terms of the bonus structure should be clear to the employee. PNPs see patients in physicians' offices, hospitals, and outpatient care centers. The incentive calculation shall be calculated 30 days after the end of the Employer's fiscal year, which is July 1 to June 30. If it is not, I would do a salary/production hybrid. 1. Models that are being used to measure physician productivity are available to be examined in terms of their applicability to the NP work force. Employers paying based on productivity will typically put into your employment contract a dollar amount they will compensate you for each RVU earned. That level has yet to be determined, as well as the amount of the reward. AUTHORITY: 38 U.S.C. You can break through the ceiling. Hello, When you hire a new mid-level provider, you expect them to break-even. The incentive compensation will then be paid by 60 days after the Employer's fiscal year ends. Save my name, email, and website in this browser for the next time I comment. Similarly, as a nurse practitioner, you may be offered a position where you are paid on a productivity basis rather than a flat salary. Afterall, you dont make an investment just to break-even. You hit a jackpot in terms of a job! Hi, A new job wants to pay me 130K base and $34 per RVU on top of that. You mentioned on another site to ask no less than $30/RVU. Straight pay plus a bonus will guarantee a certain amount, but it wont be as lucrative, so see what the patient volume is like at these facilities. Now, what type of model should you ask for during a job negotiation? This is because a providers collections depend on how well the practices billing department performs. Knowing this, we can calculate the level of collections that our mid-level provider needs to produce before they start generating profit for the practice. For every $1 you collect, we figured $0.66 went into the operational overhead. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); We're here to help you take your practice to the next level. If you bust your ass, your pay stays the same. I appreciate your reply! //