A method of controlling health care costs by reviewing the medical necessity of care is called:

The method of controlling health care costs by reviewing the medical necessity of care is known as utilization review. This process involves assessing whether the services provided to patients are necessary, appropriate, and efficient, based on established guidelines or clinical criteria.

Utilization review serves to ensure that patients receive the right level of care while also helping to contain costs by preventing unnecessary procedures or extended hospital stays. It typically takes place before, during, or after the provision of care and can be performed by insurance companies, healthcare providers, or dedicated review organizations.

Understanding this concept is crucial for billing practices because it directly impacts reimbursement and the overall financial management of healthcare services. By focusing on medical necessity, healthcare organizations can improve care quality while also enhancing their operational efficiency, thereby promoting cost-effective utilization of medical resources.