WHAT IS THE RESOURCE-BASED RELATIVE VALUE SCALE?
All CPT (Current Procedural Terminology) codes that describe physician services and procedures covered by Medicare are assigned relative value units (RVUs). These units reflect the different amounts of physician work and practice expenses for individual services or procedures. Each type of RVU is calculated using a specific formula. The Medicare reimbursement for a CPT code is determined by multiplying the RVU for that code with a dollar value conversion factor that is the same for all CPT codes: For example, total RVU x 2007 conversion factor ($37.8975) = Medicare payment. Figure. Dr. Neil A. Busis [ Click here to enlarge ] HOW ARE RVUS DETERMINED? Three components make up the total RVU for a service or procedure – physician work, practice expense, and professional liability insurance. On average, work RVUs comprise 52 percent of a service, practice expense RVUs are 44 percent, and professional liability insurance RVUs are 4 percent. HOW ARE RVUS UPDATED? The CPT Editorial Panel sends
