What describes the Resource-Based Relative Value Scale (RBRVS)?

• A. A physician payment system based on resource costs of providing those services.
• B. A framework for hospital accreditation
• C. A method for patient scheduling
• D. A pricing model for CPT codes

Answer: (A)

RBRVS is a physician payment system that ties payments to the resources required to provide services. Each CPT-coded service gets a relative value based on three components: physician work (time, effort, skill), practice expenses (overhead for the office and supplies), and malpractice insurance costs. These relative values are adjusted for geography and summed to form a total value, which is then multiplied by a conversion factor to determine the payment amount. This approach standardizes payments across different services and locations and is used by Medicare and many private payers. It isn’t about hospital accreditation, nor about patient scheduling, and while CPT codes are the basis for valuation, the key idea is a resource-based framework for valuing and paying physician services.