What Is An Rvu In Healthcare

These resources include the physician s work the expenses of the. It is critical to medicare medicaid and commercial health insurance reimbursements. This reimbursement is dependent on rvus which stands for relative value units.

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Originally created as the principle unit of the rbrvs for cms rvus became the foundation of the medicare physician fee schedule mpfs as well as the basis of most commercial fee schedules.

What is an rvu in healthcare.

Total rvu based compensation requires paying a doctor dependent on the type and amount of work they do in treating a patient. A physician wants a hospital or health system to purchase the practice. Before rvus were used medicare paid for physician services using usual customary and reasonable rate setting which led to payment variability the omnibus budget reconciliation act of 1989 enacted a medicare fee schedule and as of 2010 about 7 000 distinct physician services were listed. Rvus should be a part of the discussion says swanson.

How many rvus does each physician generate and what is expected so both individuals pull their own weight. The fee for each service depends on its relative value units rvus which rank on a common scale the resources used to provide each service. The services are classified under a nomenclature based on the current procedural. The geographically adjusted rvus are then multiplied by a conversion factor that converts the rvu into a dollar amount which determines the price that medicare or the hmo pays.

Relative value units rvus january 12 2015 medicare uses a physician fee schedule to determine payments for over 7 500 physician services. The use of rvus to valuate medical services reformed healthcare payment systems. Once a physician is employed by the hospital he or she will probably be paid based on rvus says swanson. These three rvu factors are then multiplied by a geographical adjustment that creates the compensation level for the service in that exact location.

Prior to the implementation of the rbrvs in 1992 physicians set charge rates for the medical care they provided to patients.

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