nurse practitioner productivity bonus formula

Hi Justin, I am a fairly new NP and am being offered a position as a primary care hospitalist. Keep this in mind. The practice must pay for medical supplies and equipment as well as employ nurses or medical assistants. A NP wanting to negotiate a bonus structure should gather data on his or her billings and collections from the previous year. Bonus Compensation earned by Provider is paid within thirty days of January 1st of each year. For example, an intermediate level office visit is assigned a code of 99214 and a simple laceration repair is assigned a code of 12001. The incentive will be calculated as follows: The incentive shall be 30% of Employee's professional services cash collections exceeding (salary plus $80,000.00). Now lets assume the practice collected $2,000,000 in net receipts for the year. Accordingly, before you sign that contract, it's essential to understand all of the terms. This focus includes the tasks of teacher,. Productivity Incentive Plans for Nurse Practitioners: How and Why. If it is a smaller practice, then I would try to go as high as 70% of collections. Nurse Practitioner income in the private sector is approximately $118,140 for base pay with a full benefits package of $49,911. The RVU is just to keep track of productivity is all. Historically, nurse practitioners have been paid a salary commensurate with experience. Would you forgo bonus for base pay increase? September 21, 2021 by Tyler DeVries Leave a Comment. Nurse practitioners (NPs) are valued members of the health care team, and their numbers are growing each year. You are being ripped off. Or something else? Some bonus incentive plans include a clause that specifies a base-level expected collection rate, say 95%, and includes provisions so that the bonus calculation isnt adversely affected by a lower rate. You could really kill it. If you are a high functioning nurse practitioner and can generate a lot of revenue for the practice, you do not see the benefits of it. Alabama Average RN Salary: $61,920 Average Hourly: $29.77 Number of RNs in Alabama: 49,780 49. Medicare Pays You or Your Practice for Your Services. American Association of Nurse Practitioners. You hit a jackpot in terms of a job! Your employer will specify your compensation methods in your physician contract. His work is focused on developing digital practice management resources for independent healthcare providers. 2021 Advanced Practice Salary Guide - DirectShifts I would print a report from the current year and annual it so you can compare it to the target you were given for the year and see how close it is. For employees who are looking to increase their compensation, some might prefer that a year-end bonus comes in the form of a wage or salary increase so that their earnings are compounded. How should nursing productivity be measured? | Nursing Times Nurse Practitioner Job Baltimore Maryland USA,Healthcare 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). * Maintain consistent level of productivity. As clinicians that blend clinical expertise in diagnosing and treating health conditions with an added emphasis on disease prevention and health management, NPs bring a comprehensive perspective and personal touch to health care. I was told that I should use the MGMA for WRVUs but I do not know how to calculate the RVUs based on the median given for OBGYN. Then, each CPT code is assigned an RVU. It sucks. Heres a sample spreadsheet showing the two components: NOTE: Dont forget to do a chart audit on a regular basis. 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? If it is not, I would do a salary/production hybrid. If youre a physician owner hiring a new mid-level provider, or if you need help restructuring a new compensation plan, this ones for you. It is a fantastic model and much easier to keep track of than collections. $32 per RVU is the going rate at practices that VALUE their providers, not nickel and dime then. 2019;67(6):707-712. The real money is owning your own practice though. It is the most optimal model in terms of generating a diverse income, protecting yourself, keeping practice fresh and creating redundancy in your life (redundancy in this context means a system design that duplicates resources to provide alternatives in case one resource fails). 2. Hi Zach, 1. Nurse Practitioner Productivity Payment: How Does it Work - ThriveAP Collections rate = Collections divided by billings. //]]>. Exclude any expense that is the direct costs of other providers. I know a couple of my peers make $140k+. What are the benefits of hourly pay or salary? Image, Download Hi-res Instead, ensure all providers in the practice are striving toward the same productivity and quality goals. I struggling to navigate between the contracts. Stanik-Hutt, J, Newhouse RP, White KM, et al. The RVU ranks on a common scale the resources used to provide a medical service and is used to determine how much you will be paid. document.write('