MhA 710 Test 3 Key Terms Exam Questions
and Answers with Verified Solutions | Latest
Updated 2026
Marginal revenue product The change in total revenue resulting from
the sale
of the output produced by an additional
unit of a
resource.
Relative-value unit Metric used to measure resource use
(time, effort,
and investment) involved in the production
of
physicians' services. Components
measured
include work effort, practice expense, and
the cost
of professional liability insurance.
, Resource-based relative value A classification system for physicians'
scale (RBRVS) services,
using a weighting scheme that reflects the
relative
value of the various services performed.
Developed for Medicare by a group of
Harvard
researchers, the RBRVS considers time,
skill, and
overhead cost required for each service.
When
used in conjunction with a monetary
conversion
factor, medical fees are determined.
Usual, customary, and reasonable A price ceiling set to limit fees to the
(UCR) charges minimum of
the billed charge, the price customarily
charged by
the provider, and the prevailing charge in
the
geographic region.
Relative-value scale (RVS) An index that assigns weights to various
medical
services used to determine the relative
fees
assigned to them.
Monetary conversion factor A monetary value used to translate relative
value
units into dollar amounts to determine a
fee
schedule.
and Answers with Verified Solutions | Latest
Updated 2026
Marginal revenue product The change in total revenue resulting from
the sale
of the output produced by an additional
unit of a
resource.
Relative-value unit Metric used to measure resource use
(time, effort,
and investment) involved in the production
of
physicians' services. Components
measured
include work effort, practice expense, and
the cost
of professional liability insurance.
, Resource-based relative value A classification system for physicians'
scale (RBRVS) services,
using a weighting scheme that reflects the
relative
value of the various services performed.
Developed for Medicare by a group of
Harvard
researchers, the RBRVS considers time,
skill, and
overhead cost required for each service.
When
used in conjunction with a monetary
conversion
factor, medical fees are determined.
Usual, customary, and reasonable A price ceiling set to limit fees to the
(UCR) charges minimum of
the billed charge, the price customarily
charged by
the provider, and the prevailing charge in
the
geographic region.
Relative-value scale (RVS) An index that assigns weights to various
medical
services used to determine the relative
fees
assigned to them.
Monetary conversion factor A monetary value used to translate relative
value
units into dollar amounts to determine a
fee
schedule.
