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How to Establish a Palliative Care Program

Utilization Review

Utilization review is the term used for monitoring appropriateness of hospitalization for patients in a hospital.

Most patients are hospitalized while someone else pays the bill. That someone wants to be sure that the bill isn't excessive or inappropriate.

Utilization review can be performed either by the third-party payer or by a department of the hospital. Frequently, the hospital will contract with the payer to perform the utilization review on the payer's behalf. In all cases, the utilization review department is usually involved in transmitting information about the patient to the payer. The information usually comes from documentation in the medical record.

Its important to understand the relationships and the interests of the parties involved.

The payer wants to be sure it is only paying for appropriate services. There are two standards; medical necessity and covered services. Payers are interested in being stringent enough to protect their stockholders and overall viability, but not so stringent as to upset their clients (including the employers that usually pay the premiums).

The hospital wants to be paid for the services it provides. If the hospital doesn't get paid for its services, it will go out of business. Employees of the hospital get this message loud and clear. The Utilization Review (UR) department of the hospital works in the interests of the hospital. UR staff interests are balanced by wanting to keep patients, and physicians happy, so they will keep using the hospital, and to market hospital services by sharing this choice with others.

The physician is responsible for the medical care of the patient. That means being an advocate for the patient. The physician's interest to give the patient what he or she wants is balanced by needing to keep privileges at the hospital, and part of the panel of physicians paid by the payer.

When a claim is denied, respond. Review documentation, supply additional information and persist in assuring that payment is made for appropriate care.

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CAPCManual Attribution:  von Gunten CF, Ferris FD, Portenoy RK, Glajchen M, eds. CAPCManual: How to Establish A Palliative Care Program. New York, NY: Center to Advance Palliative Care, 2001.   © Center for Palliative Studies, San Diego Hospice & Palliative Care, San Diego, CA and
The Department of Pain Medicine and Palliative Care, Beth Israel Medical Center, New York, NY, 2001

Permission to reproduce for non-commercial educational purposes with display of attribution and copyright is granted.
Last updated: February 20, 2002

Development
Select section:
Change, Groups, Phase 1, 2, 3, 4

•  Change
      In Individuals
      In Organizations
         Stages of Change
            Awareness
            Adoption
            Implementation
            Institutionalization
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•  Small Group Structure / Function
      Leadership
      Group Formation
      Group Function
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•  Phase 1: Prepare to Plan
      Potential of Planning Process
         How Much is Enough?
         Ensuring Impact
      Form Initial Workgroup
      Elaborate Initial Idea
         Stakeholders, Customers
         Need, Purpose of Program
         Planning Questions
         Planning Steps, Timeline
         Resources Needed to Plan
            Use of Consultants
            Use of Retreats
      Write Planning Proposal
      Selling, Getting Approval
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•  Phase 2: Plan the Program
      Form Planning Workgroup
      Review, Revise Process
      Strategic Planning
         What is Strategic Planning?
            Models
            Steps
            How Much is Enough?
            Resources
         Review Stakeholders, Customers
         Conduct Needs Assessment
            Company
            Competition
            Customers
            Conduct SWOT Analysis
            Case Study - United Hospital Fund
         Define the Program
            Purpose, Values
            Mission, Vision
               Mission
               Vision
            Service Delivery Model
            Goals, Objectives
            Strategies, Tactics
            Strategic Decision Points
      Business Planning
         Case Examples:
            Cleveland Clinic
            University of Virginia
         Organizational Structure, Leadership
         Financial Plan
         Implementation Plan
            Human Resources
            Physical Resources
            Informational Resources
            Community Resources
            Operations
            Evaluation
         Marketing Plan
         Targets, Timing
      Write Proposal
         Suggested Proposal Outline
      Sell Plan
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•  Phase 3: Implement the Program
      Staff Recruitment
         Staff Training
         High Functioning Team
      Standards of Practice, Policies, Procedures
      Clinical Evaluation
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•  Phase 4: Review Program, Revise Plan
      Form Review Workgroup
      Program Evaluation
         Plan Evaluation
            Continuous Quality Improvement
         Utilization Review
            Appropriateness of Hospitalization
            Documentation
               Pearls
            Respond to Denials
      Revise Plan, Further Development
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