In the Resource-Based Relative Value Scale, the relative value units are used to determine:

In the Resource-Based Relative Value Scale, the relative value units are used to determine:

• A. Patient co-pays.
• B. Insurance overhead.
• C. Payments for services based on relative value units.
• D. Hospital room charges.

Answer: (C)

RVUs on the Resource-Based Relative Value Scale determine payments for physician services. Each service is assigned a relative value in units, reflecting the work involved, the practice expenses, and the malpractice costs associated with delivering that service. The total RVUs for a service are then multiplied by a dollar conversion factor to establish the payment amount, often with geographic adjustments. This is how Medicare and many insurers calculate reimbursements for physician services, independent of patient co-pays, insurance overhead, or hospital room charges. So, payments for services are based on relative value units.

RVUs on the Resource-Based Relative Value Scale determine payments for physician services. Each service is assigned a relative value in units, reflecting the work involved, the practice expenses, and the malpractice costs associated with delivering that service. The total RVUs for a service are then multiplied by a dollar conversion factor to establish the payment amount, often with geographic adjustments. This is how Medicare and many insurers calculate reimbursements for physician services, independent of patient co-pays, insurance overhead, or hospital room charges. So, payments for services are based on relative value units.