1. What is Relative Value Unit (RVU)?

The Relative Value Unit (RVU) is a measure used in the United States Medicare reimbursement formula to quantify the resources required to provide a specific medical service. It consists of three components: work RVU (wRVU), practice expense RVU (PE RVU), and malpractice RVU (MP RVU).

2. How Does the Calculator Work?

The calculator uses the RVU formula:

Where:

• \( \text{wRVU} \) — Work Relative Value Unit (physician work component)
• \( \text{PE RVU} \) — Practice Expense Relative Value Unit (practice costs)
• \( \text{MP RVU} \) — Malpractice Relative Value Unit (malpractice insurance costs)

Explanation: The equation sums the three components that make up the total relative value of a medical service.

3. Importance of RVU Calculation

Details: RVUs are crucial for determining physician reimbursement under Medicare's Physician Fee Schedule and are often used in productivity-based compensation models.

4. Using the Calculator

Tips: Enter the three RVU components (wRVU, PE RVU, and MP RVU) as positive numbers. The calculator will sum them to provide the total RVU.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between wRVU, PE RVU and MP RVU?
A: wRVU measures physician work, PE RVU covers practice expenses, and MP RVU accounts for malpractice insurance costs.

Q2: How are RVUs used in physician compensation?
A: Many practices use wRVUs to measure physician productivity and determine compensation.

Q3: Where can I find RVU values for specific procedures?
A: The Centers for Medicare & Medicaid Services (CMS) publishes RVU values annually in the Physician Fee Schedule.

Q4: Do RVUs vary by geographic location?
A: Yes, geographic practice cost indices (GPCIs) adjust RVUs for regional cost differences.

Q5: How are RVUs converted to dollar amounts?
A: The conversion factor (CF) set by CMS converts total RVUs to payment amounts.