1988
DOI: 10.1056/nejm198809293191305
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Estimating Physicians' Work for a Resource-Based Relative-Value Scale

Abstract: We have developed a resource-based relative-value scale as an alternative to the system of payment based on charges for physicians' services. Resource inputs by physicians include (1) total work input performed by the physician for each service; (2) practice costs, including malpractice premiums; and (3) the cost of specialty training. These factors were combined to produce a relative-value scale denominated in nonmonetary units. We describe here the process by which the physician's work was defined and estima… Show more

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Cited by 324 publications
(143 citation statements)
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“…Relative value units are units of value assigned to each medical procedure based on the resources (labor, capital equipment, office space, etc) used to produce that procedure. One of the most popular RVU scales is the Resource Based Relative Value Scale (RBRVS) developed by Hsiao and colleagues 14 which serves as the basis for Medicare Part B reimbursement of physicians. RVUs are translated into prices or costs by multiplying by a dollar conversion factor.…”
Section: Methods Of Data Collectionmentioning
confidence: 99%
“…Relative value units are units of value assigned to each medical procedure based on the resources (labor, capital equipment, office space, etc) used to produce that procedure. One of the most popular RVU scales is the Resource Based Relative Value Scale (RBRVS) developed by Hsiao and colleagues 14 which serves as the basis for Medicare Part B reimbursement of physicians. RVUs are translated into prices or costs by multiplying by a dollar conversion factor.…”
Section: Methods Of Data Collectionmentioning
confidence: 99%
“…Outpatient and inpatient costs were estimated using a relative value units (RVUs) methodology, 24 where costs were calculated by applying unit costs assigned to each medical service item to each patient's resource utilization, and were adjusted for inflation to the year 2004 (US dollars), using the medical care component of the consumer price index. 25 Days of hospitalization, with dates of admission to 1 year post-transplant and the number of outpatient clinic visits through 1 year post-transplant, were also obtained to interpret cost data.…”
Section: Data Collectionmentioning
confidence: 99%
“…For example, the Resource-Based Relative Value Scale, instituted by Medicare in 1992, assigned relative value units (RVUs) for each service provided, based on a formula of physician work, practice costs, and the cost of specialty training. This effort reflected an attempt to standardize Medicare payments to physicians [2], and many other payers followed Medicare's lead. Despite this attempt at standardization, however, income disparities between specialists and generalists have persisted for a variety of reasons, including increasing volume of procedures and weaknesses and political pressures within the Relative Value Scale update process that continue to favor the status quo [3].…”
Section: Medical Payments In the Usmentioning
confidence: 99%