General
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• Standardized physician payment schedule implemented by Medicare in 1992
• Payment for a procedure code is calculated as the relative value unit (RVU) multiplied by the conversion factor
• The RVU is calculated based on physician work, physician practice expense and the professional liability cost for that procedure code, and each component is adjusted by geographic practice costs
• All figures are computed by the federal government

This information is intended for physicians and related personnel, who understand that medical information is often imperfect, and must be interpreted in the context of a patient's clinical data using reasonable medical judgment. This website should not be used as a substitute for the advice of a licensed physician.

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