AMA/Specialty Society RVS Update Process (December 2007)
December 2007 pages 3-6
AMA/Specialty Society RVS Update Process
In 1992, Medicare significantly changed the way it pays
for physicians' services. Instead of basing payments on the
usual, customary, or reasonable charges of providers, the
federal government established a standardized physician
payment schedule based on a resource-based relative value
scale (RBRVS), in which payments for services are supposed
to be based on a careful analysis of the resource
costs required to provide them. The cost of providing each
service has three distinct components: physician work,
practice expense, and professional liability insurance. Each
component is expressed in units that are...
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