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Glossary of Managed Care Terms

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R
Referral Authorization
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A verbal or written approval of a request for a member to receive medical services or supplies outside of the participating medical group.
Referral Physician
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A physician who has a patient referred to him by another Source for examination, surgery, or to have specific procedures performed on the patient, usually because the referring source is not prepared or qualified to provide the needed service.
Referral Pool
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An amount set aside to pay for non-capitated services provided by a PCP, services provided by a referral specialist and/or emergency services.
Referral Services
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Medical Services arranged for by the physician and provided outside the physician's office other than Hospital Services.
Referring Physician
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A physician who sends a patient to another source for examination, surgery, or to have specific procedures performed on the patient, usually because the referring physician is not prepared or qualified to provide the needed service.
Registered Nurses (RNs)
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Registered nurses are responsible for carrying out the physician's instructions. They supervise practical nurses and other auxiliary personnel who perform routine care and treatment of patients. Registered nurses provide nursing care to patients or perform specialized duties in a variety of settings from hospital and clinics to schools and public health departments. A license to practice nursing is required in all states. For licensure as a registered nurse (R.N.), an applicant must have graduated from a school of nursing approved by the state board for nursing and have passed a state board examination.
Reinsurance
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The practice of an HMO or insurance company of purchasing insurance from another company to protect itself against part or all the losses incurred in the process of honoring the claims of policyholders. Also referred to as "stop loss" or "risk control insurance".
Relative Value Scale (RVS)
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RVS is the compiled table of relative value units (RVUs), which is a value given to each procedure or unit of service. As payment systems, RVS is used to determine a formula that multiplies the RVU by a dollar amount, called a converter (see conversion factor).
Reserves
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(a) A fiscal method of withholding a certain percentage of premium to provide a fund for committed but undelivered health care and such uncertainties as: longer hospital utilization levels than expected, over utilization of referrals, accidental catastrophes and the like.
(b) The fiscal method of providing a fund for committed but undelivered health services or other financial liabilities. A percentage of the premiums support this fund.
Resource-Based Relative Value Scale (RBRVS)
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A Medicare weighting system to assign units of value to each CPT code (procedure) performed by physicians and other providers. The number of units or value for each procedure includes a portion for physician skill, expenses associated with the procedure, and geographic area.
Retrospective Review Process
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A review that is conducted after services are provided to a patient. The review focuses on determining the appropriateness, necessity, quality, and reasonableness of health care services provided. Becoming seen as least desirable method; supplanted by concurrent reviews.
Risk
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The chance or possibility of loss. For example, physicians may be held at risk if hospitalization rates exceed agreed upon thresholds. The sharing of risk is often employed as a utilization control mechanism within the HMO setting. Risk is also defined in insurance terms as the possibility of loss associated with a given population.
Risk Load
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In underwriting, a factor that is multiplied into the rate to offset some adverse parameter of the group.
Risk Sharing
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The process whereby an HMO and contracted provider each accept partial responsibility for the financial risk and rewards involved in cost effectively caring for the members enrolled in the plan and assigned to a specific provider.


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