1. What is RVU Calculation?

The Relative Value Unit (RVU) system is used to calculate physician reimbursement under Medicare's Physician Fee Schedule. It consists of three components: work RVU (wRVU), practice expense RVU (PE RVU), and malpractice RVU (MP RVU).

2. How Does the Calculator Work?

The calculator uses the RVU formula:

Where:

• \( \text{wRVU} \) — Work Relative Value Unit (physician work component)
• \( \text{PE RVU} \) — Practice Expense Relative Value Unit (practice overhead costs)
• \( \text{MP RVU} \) — Malpractice Relative Value Unit (professional liability insurance costs)

Explanation: The total RVU represents the combined value of all three components that determine physician reimbursement under Medicare's fee schedule.

3. Importance of RVU Calculation

Details: RVU calculation is crucial for understanding physician compensation, practice revenue, and productivity measurement in value-based healthcare systems.

4. Using the Calculator

Tips: Enter the wRVU, PE RVU, and MP RVU values from the 2025 Medicare Physician Fee Schedule. All values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are typical RVU values for common procedures?
A: RVU values vary by procedure. For example, a level 4 office visit might be 2.5-3.5 total RVUs, while a complex surgery could be 20+ RVUs.

Q2: How often are RVU values updated?
A: The Centers for Medicare & Medicaid Services (CMS) typically updates RVU values annually.

Q3: What's the conversion factor for 2025?
A: The 2025 conversion factor will be announced by CMS. This calculator focuses on RVU calculation, not dollar conversion.

Q4: Are RVUs specialty-specific?
A: While the components are standardized, the combination of RVUs varies by procedure and specialty.

Q5: How are RVUs used in physician compensation?
A: Many practices use wRVUs to measure physician productivity and determine compensation, often with a dollar-per-RVU rate.