Relative Value Definition

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As revenue generators, Nurse Practitioners (NP) must be aware of how their work contributes to the overall revenue of the clinical practice. As healthcare dollars continue to shrink and the focus on providing more care with less grows, it is important for the NPs to understand the key concepts of productivity and value to comprehend the true contribution NPs make to their practice. The concept of productivity focus on the amount of work product created given a fixed number of resources and employees. In health care setting, this is related to the clinical services provided, the professional billing activity of the providers, and the intensity of the work. Productivity in the healthcare can be measured by the Relative Value Unit (RVU). The RUV…show more content…
Productivity is the concepts of volume, cost, work effort, and revenue are the key factors that influence the final result. Whereas, value can be measured by the perceived or actual benefits gained despite costs. The concepts of quality, efficiency, effectiveness, and patient satisfaction are the key factors that influence the final result. Value can be measured through number of ways such as patient satisfaction. Many clinical activities of NP can bring value to the practice. The NP can provide services that are typically provided by physicians. An NP can increase access to the practice for patients, this can increase the appointments available to them, results in greater satisfaction and thus greater value. The NPs are also positioned to coordinating care in an increasingly complex health-care system. All these activities bring unique value to the profession. Knowing what productivity and value are is the first step for the NP to be able to understand as it will tell you how worth you are in your practice (Pickard,…show more content…
Allowing one week off for continuing education, one week off for illness and four weeks off for vacation, I can possibly make 257,600 dollar in a year. However, not all bills are paid. With a 90 percent collection rate, I can actually make 231,840 dollar per year. To identify how worth I am to my practice I need to consider a number of facts. Earnings for a Nurse Practitioner can vary from state to state and according to experience, service and further education. The average annual salary of a nurse practitioner working in the United States is around 91,450 dollar which includes 43.97 dollar per hour, 1,758 dollar per week and 7,620 dollar per month (Nurse Salary Guide, 2017). In 2012, a survey of the NP salaries were conducted in Arizona. The overall annual income of NPs in the Arizona survey was 98,122 dollar. The NP salaries were varied by geographic region within the state as well as by specialty. The NPs who chosen a subspecialty over primary care earned almost nine percent more than those in primary care. In the survey, the average income for male NPs were higher than female NPs. Education also made differences in salary for NPs with a masters in nursing versus a doctor of nursing practice degree. It is important for NPs to know what establishes a typical salary for their position. This information can help them in contract negotiations for wages

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