Relative Value Unites (RVUs)


March 4, 2020



Each test performed in the co-tenancy laboratory is assigned an RVU. The RVU is based on total cost of the operation including all fixed and variable components. Testing is billed monthly using an RVU-based fee schedule. At the end of each quarter, the total cost of testing performed in the laboratory is divided by the same period’s RVUs to arrive at a cost per RVU. Each co-tenant’s total RVUs for the quarter are calculated and multiplied by the cost per RVU. The result is the owner/user’s allocated cost of testing. If there is a difference between the amount billed monthly and the allocated cost of testing, a rebate is sent to the co-tenant for the difference. The co-tenants have realized and average annual reduction of 4% in allocated cost resulting in a savings of 23% since the formation of shared laboratory.