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Definition - What does Utilization mean?

Utilization, within the context of health and wellness, is a measure of the consumption of health care provided per person over a specified time. It is used to determine the relevance and suitability of medical treatment, hospitalization, and medications supplied to a group of people.The result is usually calibrated according to the rate for a period of time per unit of population.

SureHire explains Utilization

Utilization is managed through the assessment of the suitability of health care services that are provided under a health benefits scheme. These include medical and dental services as well as practitioners. The assessment is performed using set criteria for determining and managing health care costs before they are incurred. Hospitals are also assessed for utilization by reviewing the circumstances surrounding admissions and service provision. The purpose of utilization measurement exercises is to ascertain the level of appropriateness of the services and care provided by a health care benefit in terms of the requirements of the patients covered by the benefit.

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