Question

Describe briefly the concept of relative value units.

Answer 1

Relative value units (RVUs) are used to calculate the Medicare payment in the United States, mainly payment to physicians .The concept of RVUs are a part of the resource-based relative value scale (RBRVS). As different medical services requires different level of time and efforts from medical professionals. RVUs use many factors in proper calculation , for example the hospitals are free to provide an RVU rate which may be similar or different from other medical facility providing similar services.

RVUs may define three types of resources. Like for Physician work the value units consider time, skill efforts expenses for building space, equipment, any other supplies, even the cost of insurance. T he actual practicing data for RVUs came from a Harvard University study completed in the late 1980s. The American Medical Association’s Socioeconomic Monitoring System (SMS) and estimates of nonphysician resources are counter party in these fixation.