Relative value scales for physicians' services

A key element in the construction of a physician fee schedule is the underlying relative value scale (RVS). The focus in this article is on the development and comparison of RVS's based on alternative data sources and construction methods. Results suggest that medical procedures' values are preserved across alternative charge-based RVS's. Some differences are observed, however, when comparing procedures' values on scales derived from charges versus those derived from time data. The major conclusion is that the choice of a charge data base and method of constructing an RVS need not be a primary concern in the process of developing physicians' fee schedules.