Practice Management

  • 1.  RVU Conversion Factor

    Posted 12-10-2019 15:01
    Hi all,

    My group is going through the negotiation cycle with our hospital and the topic of RVU conversion factor will be discussed.  Traditionally, we are pegged at the 50th percentile for MGMA, but I was looking to get some other data to try and understand how this relates to other practices.

    I've come across a discrepancy and wanted to make sure I am interpreting things correctly and get other's thoughts.  Specifically, looking in the Contemporary Guide to Practice Management book (Excellent if you haven't read it yet!) and comparing Table 19.10 to that in the AMFMM RVU 2014-2015 data and there is a large difference in the hospital employed row (Avg of 134 in book and 82.3 in slidedeck).  Is this a simple typo or is there something I am missing?

    Thanks for your help and I look forward to reposes.

    Jim Edwards

    James Edwards
    WakeMed Maternal Fetal Medicine

  • 2.  RE: RVU Conversion Factor

    Posted 12-10-2019 17:37
    Hi Jim
    The RVU rates are sometimes established looking at overall salary, divided by work RVUs. So if somebody is (numbers just for example) making 500,000 but they are getting 200,000 for being dept chair and only generating 5000 RVUs, some of the methodology  would ​say they were getting $100 per RVU. When really they are getting 60.  I hope that makes sense.


    James Keller

  • 3.  RE: RVU Conversion Factor

    Posted 12-12-2019 21:22

    Thanks for finding that.  In looking at the text book, the text book is incorrect.  Unfortunately after 20,000 edits I missed this and I think this was a problem of the person used for figures.  The slides on the website were changed due to a problem of one site miscalculating a practitioner type and that created the small change.  Overall, don't use the individual practice types as they are too small.  I would use the mean.  I also put the MGMA data in for that year in this chart- that is even more advantageous and is what hospital systems will feel comfortable with.  Thanks for catching that error.

    Brian Iriye

  • 4.  RE: RVU Conversion Factor

    Posted 12-13-2019 10:22
    Dr Iriye,

    Thanks for the information.  I find the book to be very helpful in understanding the basics of practice management and I appreciate all the work you have put into it.  I'm happy that someone like you is SMFM president this year as it is nice to feel represented as a non-academic MFM.

    Thanks again,

    James M. Edwards, MD

    Maternal Fetal Medicine

    WakeMed Physician Practices