### Introduce pre-authorization review of hospital admissions

##### Reference no: EM13838240

Health insurance companies in a country decided to introduce pre-authorization review of hospital admissions, i.e., all hospital admissions must be pre-authorized and the health care provider must contact the insurance agency to get the approval to admit a patient in a hospital. Managed Care entities introduced this type of review in 1990s and we know that pre-authorization review reduces hospital service utilization. In a diagram, show the impact of pre-authorization review of hospital admissions on hospital care market. If hospital care and outpatient care services are complements of each other, how will this policy-change affect outpatient care market? What will be effect of this hospital admission reviews on the insurance market?

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