Medicare General Information, Eligibility and Entitlement Manual (Pub. 100-01), Ch. 1 § 60.1
Purpose of PRO Review for the Individual Medicare Beneficiaries
60.1 - Purpose of PRO Review for the Individual Medicare Beneficiaries
(Rev. 1, 09-11-02)
The PROs review items or services provided to Medicare beneficiaries to determine:
•
Whether services provided or proposed to be provided are reasonable and medically
necessary for the diagnosis and treatment of illness or injury, or to improve functioning
of a malformed body member, or for prevention of an illness, or for the palliation and
management of terminal illness;
•
Whether those services furnished or proposed to be furnished on an inpatient basis could
be effectively furnished on an outpatient basis, or in an inpatient health care facility of a
different type;
•
Medical necessity, reasonableness, and appropriateness of inpatient hospital care for
which additional payment is sought under the outlier provisions of PPS;
•
Whether a hospital has misrepresented admission or discharge information, or has taken
an action that results in the unnecessary admission of an individual entitled to benefits
under Part A, unnecessary multiple admissions of an individual, or other inappropriate
medical or other practices with respect to beneficiaries, or billing for services furnished to
beneficiaries;
•
The validity of diagnostic and procedural information supplied by the provider to the A/B
MAC (A) for payment purposes;
•
The completeness and adequacy of hospital care provided; and
•
Whether the quality of services meets professionally recognized standards of health care.
These activities enable PROs to determine whether Medicare payment may be made for the
services claimed and to identify and initiate corrective action where appropriate. PROs have the
authority to deny Medicare payment for medically inappropriate and unnecessary admissions.
They also investigate individual beneficiary complaints about the quality of care received.