Utilization management

Utilization Management (UM) is a healthcare approach that aims to ensure the provision of necessary medical services to patients at the right time and in the most efficient manner. UM involves evaluating the necessity, appropriateness, and efficiency of healthcare services, procedures, and facilities according to established criteria or guidelines under the provisions of an applicable health benefits plan.

Overview

Utilization Management is a technique used by health insurance companies and plan sponsors to manage health care costs through the appropriate provision of care. The primary goal of UM is to ensure that all medical care is necessary and provided in the most appropriate setting.

History

The concept of Utilization Management has its roots in the 1970s and 1980s when healthcare costs began to rise significantly. The need for a system to manage these costs led to the development of UM.

Process

The UM process involves several steps, including pre-certification, concurrent review, retrospective review, case management, and appeals. Each of these steps involves a review of the medical necessity and appropriateness of the proposed care.

Benefits

The benefits of Utilization Management include cost savings, improved patient outcomes, and increased patient satisfaction. By ensuring that care is necessary and appropriate, UM helps to avoid unnecessary costs and improve the quality of care.

Criticisms

Despite its benefits, Utilization Management has been criticized for potentially limiting patient access to care and for the administrative burden it places on healthcare providers.

See Also

• Healthcare Management
• Health Insurance
• Healthcare Costs
• Medical Necessity

References

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