Question

Check the three components of the Relative Value Unit.

1. cost differential
2. malpractice
3. inflation rate
4. work
5. office space expense
6. practice expense

Answer 1

The three components of the Relative Value Unit are work, practice expense, and malpractice. This component considers the cost of malpractice insurance, which varies depending on the specialty and geographic location of the physician.

Step-by-step explanation:

The three components of the Relative Value Unit (RVU) used in healthcare reimbursement are work, practice expense, and malpractice.

1. **Work**: This component represents the physician’s time, skill, and effort involved in providing a service. It includes factors such as the complexity and intensity of the patient's condition, as well as the required mental and physical effort.

2. **Practice Expense**: This component accounts for the costs associated with running a healthcare practice, such as office space, equipment, supplies, and support staff.

3. **Malpractice**: This component considers the cost of malpractice insurance, which varies depending on the specialty and geographic location of the physician.