Healthcare providers can use relative value units to estimate whether payors are appropriately reimbursing procedures and to secure better future payments, according to American Medical News.
The total RVU is determined by totaling how much money has been paid by an insurer and dividing that number by the relative value units performed. Commonly, RVUs are used to measure physician productivity, but they can be used to compare payors, according to the report.
Payor contracts and payment formulas vary greatly, so the RVU can be an indicator of whether or not your practice is getting paid at an appropriate market rate for a certain procedure.
Having such data can make a crucial difference at the negotiating table, the report said.
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The total RVU is determined by totaling how much money has been paid by an insurer and dividing that number by the relative value units performed. Commonly, RVUs are used to measure physician productivity, but they can be used to compare payors, according to the report.
Payor contracts and payment formulas vary greatly, so the RVU can be an indicator of whether or not your practice is getting paid at an appropriate market rate for a certain procedure.
Having such data can make a crucial difference at the negotiating table, the report said.
More Articles on Coding, Billing and Collections:
4 Tips for Helping Physicians Embrace ICD-10
Health Data Vision Raises $2.8M for Billing, Coding Software Development
Evaluate ICD-10 Transition Plans to Account for Vendors, Payors