Relative value units useful in evaluating practice finances

Relative value units useful in evaluating practice finances

(HealthDay)—The Relative Value Unit (RVU) is a useful tool for managing practice finances, according to an article published Feb. 25 in Medical Economics.

Jeffrey Bendix, a senior editor at Medical Economics, writes that RVUs are used by Medicare to decide how much it will reimburse physicians for each of the 9,000-plus services and procedures covered under its Physician Fee Schedule. Given that RVUs are a "kind of national standard," physicians should be familiar with them. RVUs, experts say, are a useful way of comparing how well payers reimburse for the same service or procedure. Additionally, providers' productivity-per RVU relative to one another in the practice can be measured.

Additionally, Bendix says, RVUs can aid in determining how much to compensate in group practices, either through measuring productivity or through a strategy that pays each physician a salary plus a bonus tied to the number of work RVUs generated over a base number. With large hospital systems using RVUs to set physician compensation and bonuses, practices with RVU knowledge can assess whether these goals are realistic for them to attain.

"From a practice management perspective, understanding RVUs is important because 'they are the language the payers speak when contracting with practices, and for reimbursing doctors for the work they do,'" said Jeffrey Milburn, an independent national practice consultant with the Medical Group Management Association, according to the Medical Economics article.

More information: More Information

add to favorites email to friend print save as pdf

Related Stories

Report reveals payment methods for physicians

Jan 30, 2014

(HealthDay)—Many physicians in non-solo practice settings are paid using different methods, with just over half receiving all or most of their compensation from salary, according to a report from the American ...

Top ten physician challenges of 2014 discussed

Jan 27, 2014

(HealthDay)—The top ten challenges for physicians in 2014 relate to payment for medical services and government mandates, as well as adapting to a changing patient population and the need to improve work-life ...

Recommended for you

Study reveals state of crisis in Canadian foster care system

21 hours ago

A new study of foster care in Canada led by a researcher at Western University reveals a shrinking number of foster care providers are available across the country to care for a growing number of children with increasingly ...

Researchers prove the benefits of persimmons for diet

23 hours ago

Alba Mir and Ana Domingo, researchers from the Department of Analytical Chemistry of the University of Valencia, under the supervision of professors Miguel de la Guardia and Maria Luisa Cervera, from the same department, ...

Hand blenders used for cooking can emit persistent chemicals

23 hours ago

Eight out of twelve tested models of hand blenders are leaking chlorinated paraffins when used according to the suppliers' instructions. This is revealed in a report from Stockholm University where researchers analyzed a ...

User comments