Rvu
A Relative Value Unit (RVU) is a measure of value used in the United States Medicare reimbursement formula for physician services.
What is an Rvu?
A Relative Value Unit (RVU) is a measure of value used in the United States Medicare reimbursement formula for physician services, and it is a part of the resource-based relative value scale (RBRVS). RVUs are assigned to procedures or services to compare their value relative to other procedures or services, meaning if a service has 6 total RVUs, the resources consumed in delivering that service are 6 times greater than those consumed by a procedure with 1 RVU.
RVUs are categorized into three main types: Work RVUs, which account for the provider's work; Practice Expense (PE) RVUs, which reflect the cost of clinical and nonclinical labor and expenses of the practice; and Malpractice (MP) RVUs, which reflect the cost of professional liability insurance. These components are used in a formula, adjusted by Geographic Practice Cost Indices (GPCIs) and a Conversion Factor (CF), to determine physician compensation from Medicare for codes on the Medicare Physician Fee Schedule.
What is the difference between an Rvu and Resource-Based Relative Value Scale (RBRVS)?
Relative Value Units (RVUs) are a measure of value used within the Resource-Based Relative Value Scale (RBRVS) to determine Medicare reimbursement for physician services. RVUs are assigned to procedures or services to compare their value, indicating the resources consumed in delivering that service relative to others.
RVU is a measure of value for individual procedures or services.
RBRVS is the overall scale or system that uses RVUs for Medicare reimbursement.
RVUs are categorized into Work, Practice Expense (PE), and Malpractice (MP) components, which are then adjusted by Geographic Practice Cost Indices (GPCIs) and a Conversion Factor (CF) within the RBRVS framework to calculate physician compensation.
What are examples of an Rvu?
Work RVU: An established patient evaluation and management (E/M) office visit (code 99214) is assigned 1.92 Work RVUs, reflecting the physician's effort and time.
Practice Expense (PE) RVU: A PE RVU covers the costs of running a medical practice, such as the salaries of clinical and nonclinical staff, rent, and medical supplies, for a given procedure.
Malpractice (MP) RVU: An MP RVU accounts for the cost of professional liability insurance associated with a specific medical procedure, reflecting the potential risk and cost of malpractice claims.
Let's review your payer contracts side-by-side with the market.
Bring your top billing codes and we'll show you how you compare to your peers in 15 minutes or less.