The Medicare Resource-Based Relative Value Scale (RBRVS) is used as the basis for physician payment by Medicare, the majority of state Medicaid programs, and some commercial payers. Therefore, it is crucial that you understand how the RBRVS works and how it may affect your practice and payments. If you are obtaining the 2007 RBRVS payment schedule from your state Medicaid program, you will find that the payments listed are different from the payments calculated from the information published by the Centers for Medicare & Medicaid Services (CMS). This is because of Medicare's use of a budget-neutrality adjuster for application of Medicare-specific payment policy.

The Medicare physician fee schedule is based on national uniform relative value units (RVUs) that are derived from the resources used to perform or furnish a service. RVUs, based on national average relative costs, have been established for the work and expenses required to perform a service....

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