Relative Value Units, or RVUs, are the basis of the criteria used to measure any type of medical services offered by physicians in the United States. The Relative Value Unit serves as a means of determining the level of reimbursement that is given to a physician in exchange for services rendered. Most health insurance providers make use of RVU to make payments for any claim involving their clients, based on the factors that go into calculating an applicable RVU.
There are three key factors involved in determining VURs. The most important element has to do with the subject of the work. This factor has to do with the services provided to the patient by the doctor, including the time spent on active treatment, as well as the evaluation of test results and any other efforts on the part of the doctor to create an effective treatment.
The second factor that comprises RVUs has to do with the expenses of the physician's practice. This includes the maintenance of personnel, equipment and facilities that are necessary for the medical group to provide quality medical services to patients. Although not considered as important as the physician's actual work, practice expenses represent a significant portion of the value of the final RVU.
Finally, the RVU structure takes into account whether or not the medical professional has medical liability insurance. While this is often the least important factor in determining RVUs, the lack of insurance is enough to create a less acceptable scale for the doctor compared to a doctor who practices in the same area but has liability coverage.
After arriving at the base RVU based on these three criteria, the final figure is modified based on the cost of living in a given geographic area. This helps adjust the RVUs to be more compatible with the current costs of health care in a particular location. Doing so helps ensure that the compensation calculated with the use of RVUs is equitable for the area involved.
Since 2000, almost all health insurance providers in the United States have used a standard for RVU developed by the Centers for Medicare & Medicaid Services. Known as Resource-Based Professional Responsibility Relative Value Units, this standard is used not only by private health insurance providers, but also by Medicare and Medicaid programs operated in the country.