Tip: Advice for utilization-management audits
Compliance Monitor, May 12, 2004
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When you audit your utilization management (UM) process and only focus on business aspects of your organization, you could be ignoring important controls that occur on the clinical side.
Utilization management (UM) programs help hospitals maintain appropriate lengths of stay and resource consumption, avoid submitting claims for services that are not medically necessary, limit excessive payment denials, and protect patients from unnecessary tests or procedures, says Jean Lambert, manager of internal audit services at Froedtert Hospital in Milwaukee.
Use these guidelines to build an effective UM audit:
1. Include clinically knowledgeable staff in this audit, Lambert says.
2. Consider reviewing the communication flow between the UM and managed-care contractors. Communication should be in real time.
3. Discuss with UM leaders which criteria they use to evaluate patients. Determine the following:
4. Make sure all individuals involved in the UM process understand the financial and clinical aspects of UM, says Debi Weatherford, director of internal audit and corporate compliance for Children's Healthcare of Atlanta.
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