Relative value units useful in evaluating practice finances

March 7, 2014
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.

Explore further: Going live with EHR leads to frustrations, productivity hit

More information: More Information

Related Stories

Going live with EHR leads to frustrations, productivity hit

March 3, 2014
(HealthDay)—Implementing an electronic health record (EHR) system takes excessive physician and staff time and disrupts practice, according to survey results published Feb. 24 in Medical Economics.

Report reveals payment methods for physicians

January 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 Medical Association.

Administrative demands hurt patient-doctor relationship

January 8, 2014
(HealthDay)—Administrative demands on doctors, particularly primary care physicians, threaten the patient-doctor relationship, according to an article published Dec. 10 in Medical Economics.

Primary care physician signing bonuses becoming the norm

November 8, 2013
(HealthDay)—Signing bonuses for primary care physicians are becoming ubiquitous in a competitive hiring landscape, according to an article published Oct. 25 in Medical Economics.

Top ten physician challenges of 2014 discussed

January 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 balance, according ...

Survey: Fees, reimbursement top physician worries

January 11, 2014
(HealthDay)—The results of a new survey show that physicians are concerned about declining reimbursements and increasing administrative hassles, including negotiating with payers, obtaining prior authorizations, and cutting ...

Recommended for you

Parents have critical role in preventing teen drinking

July 20, 2017
Fewer teenagers are drinking alcohol but more needs to be done to curb the drinking habits of Australian school students, based on the findings of the latest study by Adelaide researchers.

Aging Americans enjoy longer life, better health when avoiding three risky behaviors

July 20, 2017
We've heard it before from our doctors and other health experts: Keep your weight down, don't smoke and cut back on the alcohol if you want to live longer.

Fresh fish oil lowers diabetes risk in rat offspring

July 19, 2017
Fresh fish oil given to overweight pregnant rats prevented their offspring from developing a major diabetes risk factor, Auckland researchers have found.

High-dose vitamin D doesn't appear to reduce the winter sniffles for children

July 18, 2017
Giving children high doses of vitamin D doesn't appear to reduce the winter sniffles, a new study has found.

Scientists develop new supplement that can repair, rejuvenate muscles in older adults

July 18, 2017
Whey protein supplements aren't just for gym buffs according to new research from McMaster university. When taken on a regular basis, a combination of these and other ingredients in a ready-to-drink formula have been found ...

Study: Eating at 'wrong time' affects body weight, circadian rhythms

July 18, 2017
A new high-precision feeding system for lab mice reinforces the idea that the time of day food is eaten is more critical to weight loss than the amount of calories ingested.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.