Chairman Russell B. Roth: A frequent question concerns the expenses of the operations of utilization review committees. Specifically, it is asked whether or not individuals serving on these committees will be recompensed. This becomes particularly important in those review committee mechanisms which are not inherent in the hospitals but are set up under the auspices of county medical societies to apply to smaller hospitals. Mr. Hess will discuss this area of concern.
Arthur E. Hess: There are many ways in which the costs incurred by hospitals, fiscal intermediaries, medical societies, or others may be recognized either directly or indirectly as legitimate costs of administering these and third-party programs. I said previously that the costs incurred in connection with the implementation of utilization review will be includable in the definition of "reasonable cost" and will be reimbursable to the extent that such costs relate to health insurance program beneficiaries. We certainly
DISCUSSION: Morning Session. JAMA. 1966;196(11):1007–1009. doi:10.1001/jama.1966.03100240141034
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