Author/Authors :
Babashahy, Saeideh Department of Economics - Otago Business - Newzealand , Baghbanian, Abdolvahab Univercity of Sydney - Australia
Abstract :
Rising healthcare costs, widespread complaints about quality,
inadequate coverage and inequity in access to health services have
all given rise to ‘value’ and ‘value units’ within health sector.1,2
Such an emphasis on ‘value’ (vs. price) is important in rationing
the scarce resources for system enrichment, and improving the
cost-effectiveness of service delivery, predominantly around the
purchase of medical supplies and equipment, personal healthcare
products and physician reimbursement.3
Yet, determining the
precise ‘value’ of these products and supplies in the context of
healthcare purchasing is not well-understood, and remains a
challenge for health economists and policy-makers.4,5
Relative Value Units (RVUs) is widely recognized as a
prevailing model to gauge multi-specialty group physician’s
practices and physician reimbursement.6,7 It is known as a helpful
means of measuring healthcare providers’ productivity and job
performance.7,8 RVUs [as a part of the whole system of Resourcebased Relative Value Scale (RBRVS)] consists of several resources
listing as relative work, expenses of physician’s practice, and
malpractice costs (professional liability insurance) of healthcare
services. Often, Medicare reimburses physicians mainly through
a Fee-for-Service (FFS) Schedule based on RVUs