FairRVU·

Dermatology wRVU Compensation in 2026: Benchmarks, Cosmetic Revenue, Mohs, and What to Ask Before You Sign

Dermatology has the highest per-wRVU rate of any specialty — $72 per wRVU at the MGMA 2025 median, tied with gastroenterology. The reason is the procedural mix: skin biopsies, excisions, Mohs surgery, and a wide range of in-office procedures all carry high wRVU values in short visits. Add cosmetic revenue (which often does not flow through the wRVU system at all) and dermatology contracts become some of the most financially varied in medicine.

If you are a dermatologist evaluating a contract — finishing residency, joining a private group, or considering a corporate dermatology platform — here is what the 2026 market actually looks like and where the financial issues hide.

What the 2026 dermatology benchmarks actually are

Based on MGMA 2025 data, the median dermatologist produces approximately 6,500 wRVUs annually at $72 per wRVU. Total compensation at the median runs $470,000-$520,000 in clinical-only practices, and significantly more in practices with substantial cosmetic revenue.

The 75th percentile dermatologist produces around 8,200 wRVUs annually. The 90th percentile is 10,000 — typically reflecting either a high-volume general dermatology practice or a Mohs surgeon producing a heavy procedural load.

Dermatology is meaningfully affected by the 2026 CMS efficiency adjustment. Skin biopsies, excisions, destruction codes, and Mohs surgery all carry slightly reduced wRVU values in 2026 versus 2025. Pure E/M coding for medical dermatology visits is not directly affected.

The three dermatology contract traps

Cosmetic revenue split language that gives the practice most of the upside. Cosmetic procedures — Botox, fillers, lasers, chemical peels, body contouring — generate revenue outside the standard wRVU system. Most dermatology contracts include language defining a revenue split for cosmetic procedures, often phrased as 'physician shall receive a percentage of cosmetic revenue collected, with the percentage determined by the practice.'

The range of 'fair' cosmetic splits varies enormously. Private practices with engaged dermatologists often pay 35-50% of cosmetic revenue. Corporate dermatology platforms (private equity-backed practices) often pay 15-25%. The difference on a dermatologist generating $300,000 of cosmetic revenue annually is $60,000-$90,000 of compensation per year.

Ask explicitly: what is the cosmetic revenue split, what counts as 'cosmetic revenue' for the purpose of the calculation, and how is the split adjusted as cosmetic volume grows? Vague language about 'a fair split as determined by practice norms' is a financial trap.

Mohs surgery production targets that quietly increase workload. Many dermatology contracts include separate language for Mohs surgery if the dermatologist is fellowship-trained — 'physician shall perform Mohs surgery as scheduled by the practice.' For a Mohs surgeon, the volume can become extreme — 30-40 cases per Mohs day is not uncommon, and practices often schedule Mohs days to maximize throughput.

Without an explicit cap on Mohs case volume per day, the practice can essentially set the workload at whatever maximizes revenue. Ask for a defined maximum number of Mohs cases per scheduled Mohs day, with separate compensation for cases beyond that baseline.

In-house pathology billing arrangements that capture margin from your work. Many dermatology practices include in-house dermatopathology — biopsies you take get sent to a pathologist within the practice or to an affiliated lab. The professional fee for the pathology read flows to the pathologist or the practice, not to you. But the technical fee (the lab work itself) often generates significant margin that the practice retains.

This is not inherently unfair, but you should understand the economics. Ask what happens with biopsy specimens, who bills for the pathology, and whether the pathology revenue flows back to dermatologists in any form (revenue share, year-end bonus pool).

What fair dermatology contract language looks like

On the wRVU structure: a threshold at or below the 50th percentile (around 6,500 wRVUs) with a rate at or above $72/wRVU.

On cosmetic revenue: an explicit revenue split percentage (typically 35-50% in private practice settings), a clear definition of what counts as cosmetic revenue, and language that protects the percentage from being unilaterally reduced as cosmetic volume grows.

On Mohs surgery (if applicable): a defined maximum number of Mohs cases per scheduled Mohs day, with separate compensation for cases beyond the baseline.

On in-house pathology: transparent disclosure of the pathology billing arrangement and any revenue share back to dermatologists.

What to ask before you sign

Four specific questions worth getting answered in writing before you commit to a dermatology contract:

  1. What is the cosmetic revenue split percentage, what counts as cosmetic revenue, and is the percentage protected from being unilaterally reduced as cosmetic volume grows?
  2. If I am Mohs-trained, what is the maximum number of Mohs cases per scheduled Mohs day, and is there separate compensation for cases beyond that baseline?
  3. What happens with biopsy pathology specimens, who bills for the pathology read, and is there revenue share back to dermatologists?
  4. Was the wRVU threshold in this contract benchmarked against 2025 or 2026 MGMA values, given the CMS efficiency adjustment to procedural codes including biopsies and excisions?

These are the questions that separate a $470,000 contract from a $700,000+ contract for a dermatologist with cosmetic upside. Vague answers on cosmetic split, Mohs caps, or pathology billing tell you exactly how the math will work in practice.

Want to know how your specific dermatology contract compares to these benchmarks? FairRVU runs the full analysis in 60 seconds — wRVU threshold percentile, cosmetic revenue split analysis, Mohs production review, and pathology billing transparency check. Your contract is permanently deleted after processing.

Frequently asked questions

What is the median dermatology compensation in 2026?

The median dermatologist produces approximately 6,500 wRVUs annually at $72/wRVU based on 2025 MGMA data — tied with gastroenterology for the highest $/wRVU of any specialty. Total compensation at the median runs $470,000-$520,000 in clinical-only practices, and significantly more in practices with substantial cosmetic revenue.

What is a fair cosmetic revenue split for dermatology?

Private practices with engaged dermatologists often pay 35-50% of cosmetic revenue. Corporate dermatology platforms (private equity-backed practices) often pay 15-25%. The difference on a dermatologist generating $300,000 of cosmetic revenue is $60,000-$90,000 per year. Always ask for the explicit percentage, what counts as cosmetic revenue, and protection against unilateral reduction.

How should Mohs surgery be structured in a dermatology contract?

A fair Mohs contract defines a maximum number of cases per scheduled Mohs day (commonly 18-25 cases) with separate compensation for cases beyond the baseline. Without a cap, practices can schedule 30-40 cases per Mohs day to maximize throughput, which compresses case quality and shifts financial value entirely to the practice.

How does the 2026 CMS adjustment affect dermatology compensation?

The 2.5% reduction in procedural code wRVU values affects skin biopsies, excisions, destruction codes, and Mohs surgery. Pure E/M coding for medical dermatology visits is not directly affected. Always ask whether your wRVU threshold was benchmarked against 2025 or 2026 values.

Related guides

Ready to find out where you stand?

Analyze my dermatology contract

60 seconds. Contract deleted after processing.

FairRVU is the first step in every physician contract negotiation. AI-powered financial analysis for informational purposes only. This is not legal advice.·Privacy·Terms