What are Relative Value Units?

Relative Value Units (RVUs) are standardized measures used by Medicare and many private insurers to determine physician payment rates for medical services. Each service is assigned RVUs based on three components: physician work (time and skill required), practice expense (overhead costs), and malpractice expense (liability insurance costs). These values are multiplied by a conversion factor to calculate the final payment amount.

Why relative value units matter

• Standardizes payments: Creates consistent methodology for valuing medical services
• Affects physician income: Directly determines reimbursement rates for providers
• Influences healthcare access: May impact which services providers are willing to offer

How Solace can help

A Solace advocate can help you understand how RVUs affect the cost of your medical care, explain why certain procedures cost more than others, and identify providers who offer services efficiently within RVU-based payment systems. Advocates can also help when billing disputes arise related to service valuations.