Controlling Outpatient Medical Equipment Costs Through Utilization Management

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Abstract
Utilization management programs have been widely used to control hospital inpatient costs, but little is known about their potential to control outpatient costs. Claims data covering a 21-month period beginning in January, 1990 were analyzed to evaluate the effects of a utilization management program established by an insurance carrier to contain costs for durable medical equipment. Four items were targeted for review: seat lifts, transcutaneous electrical nerve stimulator (TENS) 2 and TENS 4 units, and power-operated vehicles. The program was associated with significant reductions (P

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