What Are The Three Steps in Utilization Review? 

What Are The Three Steps in Utilization Review?

In the ever-evolving landscape of healthcare, efficient resource allocation and cost management are paramount. One of the key processes employed by healthcare organizations to achieve these goals is Utilization Review (UR). UR is a systematic approach that assesses the necessity and appropriateness of medical services and treatments. By scrutinizing healthcare services, UR ensures that patients receive the right care, at the right time, and in the right setting. 

 The following are some crucial steps in the Utilization Review, shedding light on their importance and the benefits they bring to both patients and healthcare organizations. 

 Step 1: Pre-Admission Review 

 The first step in the Utilization Review is the pre-admission review. This phase begins before a patient is admitted to a healthcare facility or undergoes a specific medical procedure. The primary objective of this step is to evaluate whether the proposed medical service or treatment is medically necessary and appropriate for the patient’s condition. 

 Initial Assessment: The process starts with an initial assessment of the patient’s medical records and information provided by the referring healthcare provider. This assessment helps in determining the patient’s medical history, current health status, and the proposed treatment plan. 

Medical Necessity Evaluation: Utilization review professionals, often nurses or physicians, assess the medical necessity of the proposed service or treatment. They consider evidence-based guidelines, and clinical criteria, and establish best practices to make this determination. 

Authorization Decision: Based on the evaluation, the UR team decides whether to authorize or deny the requested service. If authorized, the patient can proceed with the admission or treatment, knowing that it aligns with their medical needs. If denied, the patient and the referring provider are informed, and alternative options or treatments may be explored. 

The pre-admission review step plays a crucial role in preventing unnecessary hospitalizations, reducing healthcare costs, and ensuring that patients receive the most appropriate care for their conditions. It acts as a gatekeeper, preventing the overuse or misuse of medical services. 

 Step 2: Concurrent Review 

Concurrent review is the second step in the Utilization Review process. It takes place while the patient is currently receiving medical services or undergoing treatment. The main purpose of this step is to ensure that the care being provided remains medically necessary and appropriate throughout the patient’s hospital stay or course of treatment. 

Ongoing Assessment: Utilization review professionals continuously monitor the patient’s progress, reviewing medical records, and consulting with the healthcare team as necessary. They assess whether the treatment plan is achieving the desired outcomes and whether any changes are needed. 

Length of Stay Evaluation: A significant aspect of concurrent review is evaluating the length of the patient’s hospital stay. If the patient’s condition improves, and they no longer require acute care, the UR team may recommend a transition to a lower level of care, such as home healthcare or rehabilitation, to optimize resource utilization. 

 Collaboration with Healthcare Providers: The UR team collaborates closely with the patient’s healthcare providers to make real-time decisions about the patient’s care. They ensure that any deviations from the initial treatment plan are justified and supported by clinical evidence. 

 Concurrent review enhances the quality of care by facilitating timely adjustments to treatment plans, reducing the risk of medical errors, and preventing prolonged hospital stays when not medically necessary. It also contributes to cost containment by minimizing unnecessary healthcare expenses. 

 Step 3: Post-Discharge Review 

 The third and final step in Utilization Review occurs after the patient has been discharged from the healthcare facility. Post-discharge review is essential for evaluating the overall effectiveness of the patient’s treatment and ensuring a smooth transition to post-acute care settings or ongoing management. 

Post-Discharge Assessment: Utilization review professionals conduct a thorough review of the patient’s medical records and post-discharge care plan. They assess the patient’s progress after leaving the hospital to determine if further care is required. 

Follow-up Care Planning: Based on the assessment, the UR team may recommend follow-up care, such as outpatient visits, home healthcare, or rehabilitation services. This ensures that the patient continues to receive appropriate care as they recover or manage their condition. 

Documentation and Reporting: Detailed documentation of the post-discharge review findings is crucial for maintaining a record of the patient’s care journey. It also helps healthcare organizations analyze outcomes, identify areas for improvement, and make data-driven decisions. 

The post-discharge review step contributes to the continuity of care and patient satisfaction. It reduces the likelihood of hospital readmissions by ensuring that patients receive adequate post-acute care and support. Additionally, it allows healthcare organizations to refine their care delivery processes and enhance the overall quality of care. 


 Utilization Review is a vital process in healthcare that focuses on optimizing resource utilization, improving the quality of care, and controlling healthcare costs. The three key steps in Utilization Review—pre-admission review, concurrent review, and post-discharge review—work together to ensure that patients receive the right care at the right time and in the right setting. By carefully assessing the medical necessity and appropriateness of services and treatments, UR helps healthcare organizations deliver efficient and effective care while safeguarding the interests of patients. Embracing Utilization Review as an integral part of healthcare management is a proactive approach that benefits both patients and healthcare providers in today’s complex healthcare landscape.