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Medically Necessary means services and supplies which under the terms of the applicable Service Agreement are “Medically Necessary”.  No service is a Covered Service unless it is Medically Necessary.  Hospital represents and     Payer stipulates that each medical staff member has the requisite training and education to make all decisions related to patient care and shall exercise independent medical judgment with respect to all such matters. Payer shall not     interfere with any medical staff member’s independent medical judgment with regard to treatment or utilization issues. Any payment or absence of payment for services shall not constitute an opinion or affirmation by Payer that the     services or procedures recommended or rendered by a member of medical staff are, are not, were or were not medically appropriate, but only that the service or procedure was not a Plan benefit.

“Medically Necessary” or “Medical Necessity” means, unless otherwise defined in the applicable Plan, that the Covered Services provided by a Participating Facility to diagnose or treat an illness or condition meet all of the following criteria: a. the service is appropriate for the symptoms, diagnosis, and treatment of a particular disease or condition that is defined under ICD-9-CM or DSM-IV, or its replacement; b. the service is provided in accordance with locally accepted standards of behavioral healthcare professional practice; c. the service is not rendered primarily for the convenience of the patient, the patient’s family, the Participating Facility, or any other person; and d. the type, level, and length of treatment services are needed to provide safe and adequate care.

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5 practical & achievable ways hospitals can help employers reign in healthcare costs
 
These days employers are frustrated about healthcare expenditures and what to do about them. Costs continue to escalate, value and quality are measured by the new "yardstick du jour" creating mountains of new data that is often not actionable, employee engagement in money saving behaviors is challenging at best, and there's no way to transfer more of the cost to the employee ledger without serious benefit satisfaction backlash.
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With more than 30 years of experience in health care and hospital operations, marketing, and revenue cycle management, Maria Todd wrote the leading industry books on managed care contract analysis and negotiation  written for the medical group and hospital executive audience.   Find this book and others authored by Maria on Amazon.com

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