The authors tested the hypothesis that the Department of Veterans Affa
irs (VA) hospitals would have substantial overutilization of acute car
e beds and services because of policies that emphasize inpatient care
over ambulatory care. Reviewers from 24 randomly selected VA hospitals
applied the InterQual ISD (Intensity, Severity, Discharge) criteria
for appropriateness concurrently to a random sample of 2,432 admission
s to acute medical, surgical, and psychiatry services. Reliability of
hospital reviewers in applying the ISD criteria was tested by compari
ng their reviews with those of a small group of expert reviewers. Vali
dity of the ISD criteria was tested by comparing the assessments of m
aster reviewers with the implicit judgments of panels of nine physicia
ns. The physician panels validated the ISD admission criteria for med
icine and surgery (74% agreement with master reviewers, kappa >0.4), w
hereas the psychiatry criteria were not validated (66% agreement, kapp
a 0.29). Hospital reviewers reliably used all three criteria sets (>83
% agreement with master reviewers, kappa >0.6). Rates of nonacute admi
ssions to acute medical and surgical services were >38% as determined
by the hospital and master reviewers and by the physician panels. Nona
cute rates of continued stay were >32% for both medicine and surgery s
ervices. Similar rates of nonacute admissions and continued stay were
found for all 24 hospitals. Reasons for nonacute admissions and contin
ued stay included lack of an ambulatory care alternative, conservative
physician practices, delays in discharge planning, and social factors
such as homelessness and long travel distances to the hospital. Using
criteria that the authors showed to be reliable and valid, substantia
l overutilization of acute medicine and surgical beds was found in a r
epresentative sample of VA hospitals. Correcting this situation will r
equire changes in physician practice patterns, development of ambulato
ry care alternatives to inpatient care, and modification of current VA
policies determining eligibility for care.