Question

Under the Relative Value Unit system, _________ values are assigned to each service and are determined on the basis of the resources necessary to the physician's performance of the service.

Answer 1

The Relative Value Unit system assigns relative values to medical services based on resources needed for the physician's performance. It includes work RVU, practice expense RVU, and malpractice RVU, adjusted by a geographic index and multiplied by a Medicare conversion factor.

Step-by-step explanation:

Under the Relative Value Unit (RVU) system, relative values are assigned to each medical service, and these values are determined based on the resources necessary for the physician's performance of the service. The RVU system is used by Medicare and other healthcare insurance providers to determine the amount to be paid for services. It includes three types of RVUs: the work RVU, which reflects the time and skill required by a physician to provide a service; the practice expense RVU, which accounts for the overhead costs associated with providing the service; and the malpractice RVU, which covers the cost of malpractice insurance.

Together, these RVUs are adjusted by a geographic practice cost index (GPCI) to reflect variations in costs across different geographical locations. The final payment amount for a given service is calculated by multiplying the RVUs for that service by the Medicare conversion factor, which converts the RVUs into dollars.