Many doctors emerge from their medical training with little knowledge of what and how they are paid. It seems counterintuitive that, after such extensive education, physicians still need to learn about something so fundamental that will affect the rest of their professional lives. In learning the business of medicine, physicians should start by gaining an understanding of their own compensation structure to avoid costly mistakes in their employment agreements.

One of the most important standards against which a physician’s work is measured, and for which he or she is compensated, is the relative value unit (RVU). Understanding RVUs and their impact on earnings can go a long way toward helping physicians negotiate favorable employment agreements. Read More