Resource-based relative value scale RBRVS

In 1992, the federal government adopted the resource-based relative value scale (RBRVS) method as the Medicare physician payment system. The RBRVS represents a ranking of services according to fhe relative costs of the resources required to provide the services. The system has three components (1) the relative work involved in providing the service, (2) practice expenses, and (3) liability insurance costs. The system also permits the use of modifying factors, such as geographic differences and annual increases. A pharmaceutical care RBRVS system was developed as part of fhe Minnesota Pharmaceutical Care Project. 

Payment for the majority of the patient care services provided by physician and nonphysician practitioners is based on the resource-based relative value scale (RBRVS). The RBRVS ranks services according to the relative costs of the resources needed to provide them. The resulting relative value scale is then multiplied by a dollar figure to convert the service into a payment schedule. This payment model was successfully applied to pharmaceutical care practice in the Minnesota Pharmaceutical Care Project. Five levels of patient need were created based on the following 1) the number of the patient s medical conditions 2) the number of medications the patient is taking and 3) the number of drug therapy problems identified. At 10 different community pharmacy practices in 1994, the average payment for a patient encounter was 12.14. 

Resource Based Relative Value Scale (RBRVS) a fee schedule introduced by HCFA to reimburse physicians Medicare fees based on the amount of time and resources expended in treating patients, with adjustments for overhead costs and geographical differences. 

RBRVS see Resource Based Relative Value Scale. reasonable and customary (R C) a term used to refer to the commonly charged or prevailing fees for health services within a geographic area. A fee is considered to be reasonable if it falls within the parameters of the average or commonly charged fee for the particular service within that specific community. 

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