wRVU (Work Relative Value Unit) - Physician Contract Glossary

wRVU (Work Relative Value Unit)

Definition

A measurement of physician work used in many compensation models, especially in hospital-based employment agreements.

Examples in Context

“Physician’s compensation shall be calculated at a rate of $45 per wRVU generated quarterly.”

“In accordance with CMS guidelines, the Physician will earn credit for all wRVUs tied to CPT codes billed under their NPI.”

Implications for Physicians

• Reflects the complexity, intensity, and time required for medical services provided.
• Typically unaffected by insurance reimbursement rates or payer mix.
• Common in hospital-employed physician contracts.

Negotiation Tips

• Request monthly or quarterly reports of your wRVU totals to monitor accuracy.
• Compare your wRVU rates to MGMA or AAMC benchmarks.
• Clarify if you’ll earn wRVU credit for services like consultations, procedures, or team-based care.

Red Flags and Pitfalls

• Excluding certain services or procedures from wRVU credit without explanation.
• Poor tracking or delayed reporting may result in underpayment.
• Bonus structures tied to inflated wRVU thresholds that are difficult to achieve.

Related Terms

• Formula Compensation
• Hospital Employment Contract
• Bonus Structure

FAQs

• What determines a wRVU value?
  • wRVUs are assigned based on the CPT code’s relative value as defined by CMS.
• How can I track my wRVUs?
  • Request access to your employer’s reporting platform and verify monthly statements for accuracy.
• Can I earn wRVU credit for work done by mid-level providers under my supervision?
  • Generally no, unless your contract specifically outlines credit-sharing provisions.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.