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Related Experiment Videos

The radiology relative value scale: its development and implications

J M Moorefield1, D W MacEwan, J H Sunshine

  • 1American College of Radiology, Reston, VA 22091.

Radiology
|May 1, 1993
PubMed
Summary
This summary is machine-generated.

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The American College of Radiology developed a relative value scale (RVS) to manage costs, gaining payment control but creating a complex system. This system requires ongoing maintenance and does not prioritize quality or cost-effectiveness.

Area of Science:

  • Health Policy
  • Medical Economics
  • Radiology Practice Management

Background:

  • Federal cost-containment pressures prompted the radiology profession to develop a new payment system.
  • The American College of Radiology (ACR) led the initiative in 1988.
  • Previous relative value scales (RVS) informed the development process.

Purpose of the Study:

  • To create a relative value scale (RVS) for radiologic procedures.
  • To proactively address federal cost-containment pressures.
  • To gain control over radiology payment structures.

Main Methods:

  • Utilized three data types: magnitude estimation, charges, and practice costs from surveys.
  • Employed expert consensus panels from diverse radiology fields and organizations.

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  • Incorporated physician work and practice costs into relative value calculations.

    • Main Results:

    • The relative value scale (RVS) was largely adopted by Medicare.
    • Significant effort was required to correct errors and update codes with Medicare and insurers.
    • Radiology successfully preserved fee-for-service and mitigated payment cuts, gaining payment control.

    Conclusions:

    • The proactive development of the RVS allowed radiology to manage payment threats effectively.
    • The established payment system, while complex, provided a degree of control over provider reimbursements.
    • The current RVS system does not inherently reward procedure efficacy, cost-effectiveness, or quality of care.