What does "RBRVS" stand for, and what is its purpose?

The term "RBRVS" stands for Resource-Based Relative Value Scale. This system was developed to provide a method for determining payment rates for medical services and procedures under Medicare. By using this scale, each service is assigned a relative value that reflects the resources needed to provide that service, including physician work, practice expense, and malpractice insurance.

The purpose of RBRVS is to ensure that payment rates are more equitable and based on the actual cost and resources involved in delivering healthcare services rather than historical payment patterns or arbitrary cost standards. This approach allows for a more structured and fair reimbursement system, which can help manage healthcare expenditures efficiently.