Program Objective

Our Preauthorization & Utilization Management program is the first step in monitoring and controlling the way your benefit plan is used. Developed in 1993, this program enables us to ascertain the medical necessity of the services a patient may receive, ensure that the treatment is the most appropriate and cost effective, and most importantly, we are able to identify high risk and high cost patients early on.


Cost Savings

With our Preauthorization & Utilization Management program, we are able to provide significant savings throughout the process by utilizing the following interventions:

  • Redirection into PPO
  • Negotiation with vendors
  • Avoidance of unnecessary hospital stay
  • Discharge planning through concurrent review
  • Denial of requested services if they are not medically necessary or are a plan exclusion

With these services, we are able to ensure that each procedure is the most cost effective for our client and the patient, while at the same time making sure that the patient receives a high level of care. As an example, the chart below displays how our concurrent review for inpatient hospital stays compare to the national average.

  National Average*
Under Age 65
West Coast Average* ICM
Hospital Days
Per 1000 Lives
426 375 158
Annual Cost of Hospital Days per 1000 Lives (At $3500/day)
$1,491,000 $1,312,500 $553,000
*Census for Disease Control, 2004

That's an overall savings with ICM of $759,500 to $938,000 per year!


Program Description

The Preauthorization & Utilization Management program offers a wide variety of quality, cost-saving services, such as:

  • Preauthorization for inpatient and outpatient surgery
  • Vendor negotiations
  • Mental health and chemical dependency review
  • Concurrent review
  • Discharge planning
  • Home healthcare review
  • Skilled nursing review
  • Case management referral
  • Reconsiderations and appeals
  • Redirection into PPO
  • Second Surgical Opinion

Whenever a patient needs a high cost service, the provider calls ICM. Our Preauthorization Staff then enters the patient's demographics, and verifies that the procedure requires preauthorization according to the guidelines set by our client. If the procedure requires preauthorization, the Preauthorization Specialist enters the medical information, verifies that PPO providers are being utilized, and, if possible, authorizes the procedure over the phone. If the procedure is more complex, the Preauthorization Specialist will request clinical notes to go to our Utilization Management Department.

Our Utilization Management Nurses then use nationally published criteria to determine if the procedure is medically necessary and appropriate based on the information provided. If the procedure is questionable or complex, the information is then forwarded to the Medical Director for a final determination.

Additionally, hospitalized patients are concurrently reviewed via telephone throughout their stay. On-site concurrent review may be done in cases where significantly complex medical care is occurring and complex discharge planning needs are identified.

With an average turn around time of 3.5 hours, our team of trained specialists and certified nurses is able to quickly and effectively make these determinations, without hindering the care of the patient. Compared to the Department of Labor regulation requiring a determination in 15 days, Innovative Care Management stands out for our speed and efficiency.


The Preauthorization & Utilization Management Team

At Innovative Care Management, we pride ourselves on superior customer service, efficiency, quick turn-around time, and accuracy in our determinations; none of this could be done without the two departments of this program. The Utilization Management Department consists of 6 RNs, all with CPUR certification, including a supervisor of the department to oversee the process. Also, the 8 members of our Precertification department undergo extensive training in customer service, medical terminology, and our proprietary database. Additionally, the department supervisor reviews all preauthorizations, every day, to assure that the highest care and attention are given throughout the process.


Contact Us

Call Innovative Care Management to ask our sales department about the Preauthorization and Utilization Management Program or our other programs. We're here to help you start saving while maintaining the highest quality care.

Executive Vice President
Sales & Marketing:
Bill Kane

(503) 905-3153
bkane@innovativecare.com


General Contact Information:

Innovative Care Management, Inc.
10117 SE Sunnyside Rd., Box F409
Clackamas, OR 97015

Toll Free: 800-862-3338
Portland Area: 503-654-9447
Fax: 503-654-8570

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