Question

What is the purpose of RBRVS type of reimbursement system (resource-based relative value system )

Answer 1

Resource based relative value scale (RBRVS):

RBRVS, A system that ranks physician services by units and provides a formula to determine a Medicare fee schedule. Takes into skill and training, risk, and time of services.

Purpose of RRVDS:

- It permits comparisons, takes into account labor skill supplies.

- RBRVS is the cornerstone of Medicare's physician/provider payment plan, space, and other costs.

- RVU reflects national averages and is the sum of the physician work (WORK), Physician practice expenses (PE), and malpractice costs (MP).

- Primarily, The purpose found through intent of the research was to address the issue of income disparity between physician specialists and general practitioners. Specialists were higher paid than general practitioners; more medical students were entering specialty fields. This resulted in a shortage of family doctors; especially in rural areas. The additional purpose and side benefit of this new system of classification was to save the government Medicare funds.

- Classifies health services based on the cost of furnishing physician services in different settings, the skill and training levels required to perform the services, and the time and risk involved.

- The RBRVS is the federal government's payment system for physicians. Attempt to represent the worth of healthcare services.