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Please see our Privacy Policy for details. CPT is a registered trademark of the American Medical Association [2] CMS recently implemented a policy to use an average of the three most recent years of available Medicare claims data to determine the specialty mix assigned to each code.

We use relative value units RVUs in many aspects of our practices. Some physician compensation arrangements are based on RVUs; other practices use them for staffing models and productivity measurements. Where did RVUs come from and how have they evolved over time? Beginning in , William C. Chan School of Public Health, assembled a team of statisticians, measurement specialists, economists and physicians to review national data on medical procedures and services.

The team specifically evaluated the resources and costs associated with each service and determined a method to compare one service to another. In December , President George H.

This became effective Jan. Geographic variations in staffing expense and practice overhead are adjusted by another factor. Relative Value Units or RVUs are an important concept in medical billing and revenue cycle management. RVUs help determine reimbursement rates for medicare and insurance. In addition, RVUs play a crucial role when evaluating new software.

WRVUs seem overwhelming because, like most things government, they are dressed in acronyms and gibberish :. Put a simpler way, for a physician or provider, how much work and how valuable is it to perform a certain appointment type or procedure. Put a simplest way: how valuable is it?

The work relative value unit is almost 4x for a Magnetic image bone marrow vs an initial office visit. As a physician reading these, you may be upset! A new patient visit requires lots of work. It may take an hour and is the key point of care coordination. WRVUs are not just how much work something requires, in the same way that prices for anything are not just how much work is required to make something. There is a famous economic example of a hole that shows why prices are not just a function of work put into something.