June 01, 2020
Relative Value Units and Productivity: Part 2 of 4
The initial article in this series (Volume 17, No. 5: 225-228) discussed relative value unit (RVU) basics and touched on some of the more practical applications of RVUs for managing a medical practice. This article addresses how RVUs differ from encounters and fees in terms of measuring provider productivity and resource consumption. RVUs empower practice administrators to objectively measure and quantify a medical practice’s physician productivity and performance data versus traditional productivity measures such as office visits, net charges, net collections, etc. The Resource-Based Relative Value Scale (RBRVS) RVU work component is specifically designed to measure physician (and midlevel provider) effort and the degree of independent decision-making skill required for performing a procedure; therefore, productivity is directly linked to provider coding.