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RVU & RBRVS Basics

Relative Value Units (RVUs) are used for 1) calculating Medicare payments, 2) budgeting, 3) measuring productivity, and 4) allocating expenses. It is a numerical value that represents the amount of physician effort, risk, and resources, provided or consumed, for one service relative to other services.

The Resource-Based Relative Value Scale (RBRVS) is a system of valuing physician services using RVUs. It was developed by researchers at the Harvard School of Public Health and implemented by the Medicare program in 1992. The current Medicare physician fee schedule is derived from this system.

For a primer on the basics of RVUs and the RBRVS system, please check out the following:

PSA Reports

Professional Service Agreement (PSA) reports, also known as Professional Fee Funds Flow reports, are distributed at the end of each month for the previous month. The PSA defines the flow of funds to the department. PSA departments are defined as a collection of cost centers and exist in the Accounting Department. All Billing Areas associated with a PSA cost center are also PSAs.