Healthcare Acronyms

Relative Value Unit

Used to calculate compensation for physicians using a set formula tied to various services. The number of RVUs assigned to a patient case represents an attempt to accurately capture the amount of physician work expended. RVUs are comprised of:

1. Physician work RVUs - The time spent, the cognitive and technical skills needed, and the overall difficulty involved in providing a service or performing a procedure
2. Practice expense RVUs - Nonphysician clinical staff time, medical supplies, and equipment used to maintain and run the facility where the medical encounter occurs
3. Professional liability RVUs - The cost of malpractice insurance