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Does Utilization Review Reduce Unnecessary Hospital Care and Contain Costs

Bibliographic Data

ID14338397
AuthorsThomas M Wickizer (University of Washington, corresponding author), John R C Wheeler (University of Michigan), Paul J Feldstein (University of California, Irvine)
Year1989
Volume27
Issue6
Pages632-647
Publication date1989-06-01
Open AccessNo
TypeARTICLE
VenueMedical Care (JOURNAL)
Journal identifiersISSN: 0025-7079 • E-ISSN: 1537-1948
PublisherOvid Technologies (Wolters Kluwer Health) (PUBLISHER)
DOI10.1097/00005650-198906000-00006
PMID2725090
OpenAlexW1975630071
LanguageEN
Citations received6
References cited6

Research indicates that approximately one in five hospital admissions is unnecessary or inappropriate, based on accepted clinical criteria. Various cost-containment approaches have been initiated to reduce unnecessary hospital care. Among these approaches, hospital utilization review (UR) has shown promise as a cost-containment strategy. Although third party payers are increasingly relying on UR and similar approaches to contain health care expenditures, little is known about the effects of these efforts. This study analyzes insurance claims data on 223 insured groups for 1984 through 1986 to determine the effects of a UR program instituted by a commercial insurance company. It was found that UR had a significant negative effect on both utilization and expenditures, even after controlling for a large number of factors. Specifically, UR reduced admissions by 13%, inpatient days by 11%, expenditures on routine hospital inpatient services by 7%, expenditures on hospital ancillary services by 9%, and total medical expenditures by 6%. Even though UR reduced the level of utilization and expenditures, it did not appear to influence the rate of change in these areas over time. These findings suggest that hospital UR programs can reduce utilization and expenditures and generate cost savings, thereby helping to improve the efficiency of medical care resources consumption

Actuarial science · Business · Consumption (sociology) · Economics · Health care · Health insurance · Hospital care · Inpatient care · Medical emergency · Utilization management · Utilization review · Global Health Care Issues · Health Systems, Economic Evaluations, Quality of Life · Healthcare Policy and Management · Medicine

  • Effect of hospital utilization review on medical expenditures in selected diagnostic areas

    Thomas M Wickizer•American Journal of Public Health•1991

  • Utilization Review Savings at the Micro Level

    Rezaul Karim Khandker, Willard G Manning et al.•Medical Care•1992

  • Evaluation of medical audit

    M B ROBINSON•Journal of Epidemiology and…•1994

  • Effects of health care cost-containment programs on patterns of care and readmissions among children and adolescents

    Thomas M Wickizer, Daniel Lessler et al.•American Journal of Public Health•1999

  • Do Treatment Restrictions Imposed by Utilization Management Increase the Likelihood of Readmission for Psychiatric Patients

    Thomas M Wickizer, Daniel Lessler•Medical Care•1998

  • Effects of Utilization Management on Patterns of Hospital Care Among Privately Insured Adult Patients

    Thomas M Wickizer, Daniel Lessler•Medical Care•1998

  • Sample Selection Bias as a Specification Error

    James J Heckman•Econometrica•1979

  • Limited-dependent and qualitative variables in econometrics

    G S Maddala•Limited-Dependent and Qualitative…•1983

  • The Efficacy of Second-Opinion Consultation Programs

    Hirsch S Ruchlin, Madelon Lubin Finkel et al.•Medical Care•1982

  • Impact of a Mandatory Second-Opinion Program on Medicaid Surgery Rates

    Suzanne G Martin, Michael Shwartz et al.•Medical Care•1982

  • Critique of an Earlier Study of the Sacramento Medical Care Foundation??s Certified Hospital Admission Program (CHAP)

    Rona Beth Sayetta•Medical Care•1976

  • The Appropriateness Evaluation Protocol

    Paul M Gertman, Joseph D Restuccia•Medical Care•1981

Citations per year0.17
Citation span1991 - 1999 (9)
Highly citedNo

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