A Relative Value Unit (RVU) is a numerical measure assigned to each medical service under the Medicare Physician Fee Schedule, representing the relative resources required to deliver that service. RVUs are the building blocks of Medicare payment.
There are three types of RVUs:
Work RVUs: Reflect the physician's time, effort, technical skill, mental effort, judgment, and stress involved in performing the service.
Practice Expense (PE) RVUs: Reflect the overhead costs associated with delivering the service, including clinical staff salaries, office rent, equipment, and supplies. PE RVUs are calculated separately for facility (hospital/ASC) and non-facility (office) settings.
Malpractice (PLI) RVUs: Reflect the professional liability insurance cost associated with the service.
The Relative Value Scale Update Committee (RUC), a committee of the AMA that includes representatives from medical specialty societies, recommends RVU values for new and revised CPT codes. CMS considers RUC recommendations when setting final RVU values but retains the authority to deviate from them.
Connected care codes (CCM, RPM, PCM, BHI) have RVUs that reflect the time and resources involved in non-face-to-face care management. Because care management codes are time-based, their work RVUs are generally exempt from the efficiency adjustment that CMS finalized for CY 2026, which reduced work RVUs by 2.5% for non-time-based services.
Sources:
Social Security Act ยง 1848;
AMA Relative Value Scale Update Committee;
CMS CY 2026 PFS Final Rule.
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