Glossary · Updated Jul 6, 2026
Practice Expense (PE) RVU
The practice expense RVU reflects the overhead cost of providing a service — clinical staff time, supplies, equipment, and facility costs. Medicare publishes two values for most codes: a non-facility PE RVU and a facility PE RVU.
Two values, one code
When a service is performed in a physician’s office, the practice bears the full overhead, so the higher non-facility PE RVU applies. When the same service is performed in a hospital or ambulatory surgical center, the facility absorbs much of that overhead and is paid separately, so the lower facility PE RVU applies. The rate engine selects the correct value based on the requested setting.
How it is built
Practice expense values are developed from data on the direct costs of a service (staff, supplies, equipment) and an allocation of indirect costs. The result is expressed in RVUs so it can be combined with the work and malpractice components on the same scale.
Why the setting matters for pricing
Because the two PE RVUs can differ substantially, the same code can pay noticeably more in an office than in a facility. Any accurate rate lookup has to specify whether the setting is facility or non-facility. Compare the two PE RVUs side by side on a real code, such as CPT 99213.
Frequently asked
Why is the office (non-facility) rate usually higher?
In the office the practice pays for the room, staff, and supplies itself, so Medicare folds those costs into the physician payment. In a facility, the hospital or ASC is paid separately for them.
Which PE RVU does a rate lookup use?
It depends on the setting you request. Non-facility uses the office PE RVU; facility uses the facility PE RVU.
Related
Sources
Written from primary CMS sources — see how we source, compute, and verify everything on this site.