U
Operations

Utilization Mgmt (UM)

Definition
The evaluation of the medical necessity, appropriateness, and efficiency of the use of transportation services. It is the process Brokers use to decide if a member gets a sedan, a wheelchair van, or a bus pass.

Overview

Why it Matters

UM is the primary cost-control mechanism. It prevents "waste" by ensuring patients don't use expensive wheelchair vans when they can walk to a bus stop.

How it Works

A nurse or reviewer analyzes the member's diagnosis and mobility form. If the member requests a mode of transport higher than their condition warrants, UM denies it or downgrades the mode.

Code Comparison

Comparison: UM vs. Claims Processing

UM happens before the trip (Authorization).

Claims happens after the trip (Payment).

Common Questions

  • Static Data: UM relying on a mobility form from 2 years ago, denying a wheelchair van for a patient who recently had a stroke.
  • Friction: High denial rates lead to member complaints and appeals, which increase administrative overhead.
  • Submit a "Physician Certification Statement" (PCS) with detailed clinical notes to support the need for higher levels of service, helping UM make the right decision faster.

Sources

Institute of Medicine - Utilization Management