Which RVU component covers practice expenses?

Which RVU component covers practice expenses?

• A. Conversion RVU
• B. Work RVU
• C. Facility RVU
• D. Malpractice RVU

Answer: (C)

The main idea here is how physician payments are built from RVUs. Payments use three RVU components: work value, practice expense, and malpractice. The part that covers the costs of providing the service in a facility setting—overhead like space, equipment, and staff—is the facility portion of the practice expense. That’s why this component is the one tied to practice expenses. The other parts serve different roles: work RVU reflects the physician’s professional effort, and malpractice RVU covers liability insurance costs. The conversion factor is the dollar amount that turns the total RVUs into actual payment, not an RVU category itself.

The main idea here is how physician payments are built from RVUs. Payments use three RVU components: work value, practice expense, and malpractice. The part that covers the costs of providing the service in a facility setting—overhead like space, equipment, and staff—is the facility portion of the practice expense. That’s why this component is the one tied to practice expenses. The other parts serve different roles: work RVU reflects the physician’s professional effort, and malpractice RVU covers liability insurance costs. The conversion factor is the dollar amount that turns the total RVUs into actual payment, not an RVU category itself.