Relative Value Units (RVUs) Are How Doctor Work is Measured.
RVUs are tied to the CPT Code on Each Professional Fee Bill to Medicare, Medicaid and Commercial Health Insurance Companies.
For Example a 'Level 2' Office Visit is CPT Code 99202 and is Equal to 1.73 RVUs.
Medicare Reimburses $37 per RVU.
Commercial Health Insurance Reimburses from $55 to $70 Per RVU.
The Number of RVUs for Each Activity Done by Doctors is Determined by the Relative Value Scale Update Committee... Referred to as 'RUC' for Short.
RUC is Run by the American Medical Association.
RUC has One or More Representatives from Each of the Specialties (e.g. Dermatology, Ophthalmology, etc.).
RUC Gathers Survey Data from Doctors on 'How Long' it Takes for Them to Perform Their Tests and Procedures.
RUC Votes to Determine How that Survey Data Translates into RVUs and Accordingly How Much Doctors Will Be Paid.
RUC Sends Its Recommendations to Medicare, which Almost Always Accepts Them.
As One Can Imagine, RUC Has a Pivotal Role in Physician Reimbursement and Doctor Income.
Related Video: How HEDIS Quality Scores Work
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