Which three components are considered when establishing relative value units?

The correct answer highlights the three primary components used to establish relative value units (RVUs), which are essential for determining the reimbursement rates for medical services and procedures under programs like Medicare.

Physician work represents the time, effort, skill, and judgment required by a physician to provide a service. This aspect accounts for the intensity and complexity of the service performed.

Practice expense encompasses the various costs associated with maintaining a practice, which includes operational costs related to staff salaries, equipment, supplies, and other overhead necessary for delivering care to patients.

Malpractice insurance reflects the costs that physicians incur to cover their liability in providing medical services. This is a significant consideration, as malpractice costs can vary widely among specialties and influence the overall cost structure of providing care.

Together, these three components form the basis for calculating RVUs, which are ultimately used to determine how much providers are reimbursed for their services. This systematic approach ensures that the payment reflects the resources utilized in providing care while maintaining a level of fairness across different specialties and types of services.