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RVU Calculation Formula:
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The Relative Value Unit (RVU) is a measure of value used in the United States Medicare reimbursement formula for physician services. CPT (Current Procedural Terminology) codes are assigned RVUs which consist of three components: work RVU (wRVU), practice expense RVU (PE RVU), and malpractice RVU (MP RVU).
The calculator uses the RVU formula:
Where:
Explanation: The total RVU represents the combined value of physician work, practice expenses, and malpractice costs associated with a specific medical service.
Details: RVUs are crucial for determining physician reimbursement under Medicare's Physician Fee Schedule. They help standardize payments for medical services across different specialties and geographic regions.
Tips: Enter the wRVU, PE RVU, and MP RVU values for a specific CPT code. The calculator will sum these components to give you the total RVU value for 2025.
Q1: Where can I find RVU values for specific CPT codes?
A: The Centers for Medicare & Medicaid Services (CMS) publishes annual RVU values in the Medicare Physician Fee Schedule.
Q2: How often are RVU values updated?
A: RVU values are typically updated annually by CMS, with changes usually taking effect January 1st of each year.
Q3: What's the difference between wRVU, PE RVU and MP RVU?
A: wRVU measures physician work, PE RVU covers practice expenses, and MP RVU accounts for malpractice insurance costs.
Q4: How are RVUs used in physician compensation?
A: Many healthcare organizations use RVUs (especially wRVUs) as part of physician productivity measurement and compensation formulas.
Q5: Are RVU values the same across all states?
A: While national RVU values are standard, final payments are adjusted by geographic practice cost indices (GPCIs) that account for regional cost variations.