What term describes the overutilization or inappropriate utilization of services and misuse of resources, typically not a criminal act?

The term that describes the overutilization or inappropriate utilization of services and misuse of resources, which is typically not a criminal act, is best defined as waste. Waste refers to the inefficient use of resources where services or supplies are used in ways that do not add value to patient care or could be eliminated without affecting health outcomes. Though waste may lead to higher healthcare costs, it is not characterized by intentional wrongdoing.

This distinction is particularly important in healthcare compliance and financial management. Understanding waste allows healthcare organizations to identify areas for improvement that can enhance efficiency and reduce unnecessary expenditures. It differs from abuse, which may involve practices that are improper or excessive but could still be within legal boundaries, like billing for services that are not medically necessary or for higher-level services than what was provided.