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Learn The Lingo

Learn the Lingo: Key Terms for Navigating the Value Based Care World

With the shift toward value-based payment models, pharmacists are seizing new opportunities to improve patient care in medical homes, accountable care organizations, and other innovative care models. This resource includes acronyms and terminology commonly used when practicing in or discussing innovative practice models. Each term includes a short description and references so you can further your practice in a value based care world. This is the first of multiple volumes that will be published by the Medical Home/ACO SIG.

Relative Value Units (RVUs)

Relative Value Units (RVUs)

In 1992, Medicare updated its payment system with the aid of the American Medical Association (AMA) to establish a standardized physician fee schedule based upon relative value units (RVUs).1 RVUs define the value of a health care service relative to all other health care services based upon the extent of the provider’s work, practice resources (both clinical and nonclinical), malpractice insurance, and expertise needed to deliver the service to patients.2 RVUs are the basis of the Resource-Based Relative Value Scale used by the Centers for Medicare and Medicaid Services (CMS) to determine health care providers’ payment.1

Remote Patient Monitoring (RPM)

Remote Patient Monitoring (RPM)

Remote patient monitoring (RPM) is the use of digital technology that allows providers to monitor and assess medical and other health data from patients outside of the traditional in-person or telehealth visit structure. Information is electronically transmitted to providers for review, which allows for the management of acute and chronic health conditions by taking into account more comprehensive data.

Risk-based contracting

Risk-based contracting

Risk-based contracting is the act of establishing a contract between providers and payers that makes the provider (namely, the provider group) responsible for all the costs incurred in the care of empaneled health plan members. This includes not only primary care costs, but costs related to hospital visits (e.g., inpatient and emergency department), medications, and specialists. The provider is given a fixed amount of payment per member per month (PMPM) paid in advance for the delivery of all health care services to the health plan’s members, whether the patient utilizes the services or not.1

 

 

Rural Health Clinics (RHCs)

Rural Health Clinics (RHCs)

Rural Health Clinics (RHCs) is a specific designation from Centers for Medicare and Medicaid Services (CMS). To receive this designation, the clinic has to increase access to primary care services for patients in rural, underserved communities.

Social Determinants of Health (SDOH)

Social Determinants of Health (SDOH)

According to CDC, SDOH are “conditions in the places where people live, learn, work, and play that affect a wide range of health and quality-of-life-risks [sic] and outcomes.”1 These factors can impact patient access to and understanding of health care. They may also impact the extent to which a patient or population is able to engage in their health care and healthy living.

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