How do you explain RVUs?

Basically, Relative Value Units (RVUs) is a standard set by Medicare to determine the amount to pay doctors depending on their productivity. It is a number that defines the volume of work doctors perform when treating patients for all procedures and services covered under the Physician Fee Schedule.

How much is an RVU worth in dollars?

The current Medicare conversion factor is $37.89 per RVU. In other words, Medicare would pay $37.89 for a code worth 1 RVU, $75.78 for a code worth 2 RVUs, $378.90 for a code worth 10 RVUs and so on, regardless of the type of service.

What are the effects of RVU?

Medicare reimbursement for physician services has historically been based upon the relative level of time, skill, training, and intensity provided for a given service. Medicare bases relative value units (RVUs) on 3 different factors: physician work, practice expenses, and professional liability insurance expenses.

How do I calculate my RVU?

Calculate the work RVUs (wRVUs) associated (by group or individual) by multiplying the frequency associated with each CPT code billed during the period of time by the wRVU for each CPT code.

What are the three elements of the RVU?

Medicare Reimbursement in Calculated To understand this more fully, the calculations can be broken into three components – RVUs, the geographical adjustment and the conversion factor. Relative value units (RVUs) – RVUs capture the three following components of patient care.

What is the dollar value of an RVU 2021?

Medicare’s final rule, and the subsequent Consolidated Appropriations Act of 2021, reduced its conversion factor from $36.09 per RVU to $34.89 per RVU.

Who creates RVUs?

Medicare
For each service, Medicare determines RVUs for three types of resources. The National Health Policy Forum is a nonpartisan research and public policy organization at The George Washington University. All of its publications since 1998 are available online at www.nhpf.org.

How Much Does Medicare pay for an RVU?

Because Congress has been committed to “budget neutrality” for Medicare’s physician payments, this was financed by reducing Medicare’s conversion factor by about 3.5 percent, from $36.09 per RVU to $34.89 per RVU.