Certified Specialist Physician Practice Management (CSPPM) Practice Exam 2025 – Your All-in-One Guide to Exam Mastery!

The correct response to the question identifies geographic adjustments as a component that is not categorized directly under resource consumption within the Resource-Based Relative Value Scale (RBRVS) system.

Under RBRVS, the valuation of medical services incorporates three main components: work Relative Value Units (RVUs), practice expenses, and malpractice (professional liability insurance) costs. Work RVUs reflect the time, effort, skill, and stress associated with providing a service. Practice expenses account for the overhead costs related to running a practice, including staff salaries and supplies. Professional liability insurance costs pertain to the expenses incurred to cover malpractice insurance.

Geographic adjustments, on the other hand, serve to modify the payment based on the regional cost of living and variations in the practice environment and are not components of direct resource consumption. Instead, these adjustments account for the differences in practice costs that vary widely across different locations, but they do not reflect the actual consumption aspects of providing care. This distinction helps to clarify why geographic adjustments are excluded from the definition of resource consumption in the RBRVS framework.