An RVU is the unit used in Medicare's resource-based relative value scale (RBRVS). Relative value units assign standardized weights to physician services and related clinical work so payers can compare effort across healthcare settings and set reimbursement.

Large systems often tie pay to RVU output. Independent practices can use RVU data to set prices, negotiate payer contracts, forecast payments, evaluate mergers, and grow their practice.

Medicare once paid under “usual, customary, and reasonable” pricing, a system that rewarded higher sticker prices and blurred comparisons across specialties. That model gave way to RVUs under RBRVS so practices could align payment with the resources behind professional services. RVUs now help private practices see performance clearly. 

In turn, you can use benchmarking productivity across clinicians and visit types, not just count patient visits. Or, come to the table with a payer using code-level RVU data instead of broad averages. RVUs also support fair provider compensation plans by tying pay to documented work rather than charge amounts or payer mix.

RVUs matter beyond solo practices. In a health system, leaders track service lines and staffing with RVU trends. In referrals, consistent documentation and coding make it easier to show the value of your referral network. The takeaway is simple. RVUs give private practices a neutral yardstick for pricing, negotiations, and planning that stands up across settings.

Under RBRVS, 3 components make up the total RVU for a service. These RVU value components are often summarized as RVU components in the RBRVS model.

To determine payment under the Medicare Physician Fee Schedule, the Centers for Medicare & Medicaid Services (CMS) adjusts each component with a geographic practice cost index (GPCI) to reflect local resource costs. 

The formula then multiplies the sum by an annually updated conversion factor ($32.35 in 2025) to produce reimbursement in dollars.

Work RVUs are a part of an RVU that reflects the physician's effort for a service. They account for time, complexity, risk, and cognitive load. In practice, they capture the amount of work, technical skill, and clinical decision-making required for a specific encounter.

Time is assigned across 3 phases of care:

Valuations are developed in collaboration with the American Medical Association and its Specialty Society experts through the Relative Value Scale Update Committee (RUC), which advises CMS on RVU changes. 

See the AMA overview and RUC process for how values are proposed and refined in the links below:

Because work RVUs standardize physician effort across services, they are widely used for productivity reporting and provider compensation. If you need current code values, use the CMS PFS Look-Up Tool to check RVUs for CPT and HCPCS codes by year and locality.

For established patient evaluation and management visits, CPT 99213 and 99214 show how RVUs scale with complexity: 99214 typically carries a higher work value because it requires more history, exam, and clinical decision-making than 99213. That difference is common in primary care and other specialties during routine management visits.

The site of service also matters. In outpatient clinics, non-facility overhead is higher, so practice expense RVUs are usually greater than for the same code billed in inpatient or facility settings. The work component stays tied to clinical effort, but practice expense adjusts based on where the visit occurs.

To see current RVUs and pricing, use CMS's PFS RVU calculator (Look-Up Tool) to check values by year and locality. Accurate documentation is essential. Templates in Tebra EHR+ can help capture time, problems, and data reviewed so the chosen E/M level reflects the service actually provided.

Strong RVU performance starts with clean documentation and steady operations. Focus on accuracy, throughput, and closing care gaps without changing clinical standards. Try these practice-tested steps:

RVUs help every independent practice turn day-to-day work into clear signals for planning. They also give leaders a common language for staffing, pricing, and contracts. As Andy Swanson points out, the value is practical when you focus on outcomes.

RVUs turn anecdote into evidence. With consistent tracking, decisions become simpler and easier to defend.

Value-based payment is growing. Payers look at outcomes, total cost of care, and experience measures to decide how practices are paid. RVUs still play a role because they provide a consistent way to compare effort across services and specialties.

CMS continues to use RVUs in the Medicare Physician Fee Schedule and in related reporting programs. State programs for Medicaid services often align fee updates and coverage policies with national RVU changes. Practices can pair RVU trends with quality scores, risk data, and panel complexity to guide staffing, coding, and service mix.

RVUs help leaders plan visit templates, allocate time for complex visits, and forecast revenue. They also support fair reimbursement discussions with payers by showing the mix and intensity of physician services delivered. Expect RVUs to remain a common productivity yardstick while value-based contracts expand. The 2 approaches can complement each other when practices track both clinical results and the work required to achieve them.

To save time and effort, you can use these primary sources for accurate values and context.

These links keep you aligned with current policy and valuation methods without relying on third-party estimators.

RVU literacy helps private practices turn day-to-day work into clear signals for pricing, contracts, and staffing. It lets teams compare services fairly, spot bottlenecks, and forecast confidently. It also supports cleaner provider compensation discussions and more sustainable reimbursement grounded in documented RVU value rather than charge amounts or payer mix.

Private practices can simplify documentation, coding accuracy, and E/M capture with Tebra's EHR+ software.