By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: The Absolute Case for Relative Value Units
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > The Absolute Case for Relative Value Units
BusinessFinance

The Absolute Case for Relative Value Units

DavidEWilliams
DavidEWilliams
Share
3 Min Read
SHARE

medium_9419861538

medium_9419861538

Fee-for-service methodologies, especially relative-value units (RVUs), keep creeping back into alternative payment models like capitation.  Maybe we should take the hint and adapt RVUs to the new environment rather than throwing them out the window. That’s the essential message of a persuasive Perspective by Erick Stecker and Steven Schroeder in the latest New England Journal of Medicine.

Capitation works well at the level of an overall health system, but it’s trickier to apply at the level of small physician groups due to challenges in risk adjustment in small populations and concerns about conflicts of interest. That means physicians usually get paid on some kind of RVU basis. Typical RVU methodologies only account for physician time, skill and intensity. But RVUs could be improved by using comparative effectiveness research to give more weight to activities that are likely to improve patient outcomes. The authors provide an example of stenting for chronic stable angina, which currently has a Medicare RVU weighting of 11.2. They propose boosting it by 25% for those with “AUC score of 7,8, or 9 and conducted in cath labs with an approved AUC auditing process” while lowering the RVU by 50 to 75 percent for those for whom stenting is less likely to be helpful.

More Read

Tornado Hits Joplin, Missouri and Destroys St. John’s Hospital
Why This Lawyer Won’t Sue Me
Comfort And Safety: 7 Ways Healthcare Organizations Can Create A Better Environment For Their Patients
HealthCare Marketing: Create Great Hospital Content
14 Patient Barriers That May Delay or Prevent Recovery

RVU-based systems are well entrenched because they are already understood and used by financial managers, are included in software used by health systems, and are understood by physicians. When RVUs are distorted they lead to rapid and profound changes in physician behavior. The authors cite the growth of doctor-owned specialty surgical centers and imaging centers as examples. Why not use value-based RVUs to achieve rapid increases in behaviors that are desirable from a value perspective?

RVUs are tweaked frequently so there’s no need for a high risk, big bang approach. RVUs can be changed as better evidence becomes available and to adjust to changes in physician behavior.

It sounds like a good plan to me.

photo credit: Nicholas Eckhart via photopin cc

TAGGED:relative value unitsRVU
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

What is Your Health System’s Marketing Philosophy?

April 16, 2012
Telehealth Project from my UW SON Clinical Informatics class. Circa 2011
BusinesseHealthFinanceHospital AdministrationTechnology

BIG-BIG-BIG: Company, Heart and Checkbook

March 12, 2015

Whistleblower Lawsuit Prompts Fed Action on Alleged Medicare Long Term Care Fraud

January 6, 2012

Healthbox Heads South for New Digital Health Accelerator Programs

July 16, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?