Continued escalation of healthcare costs in both the private and government sector has resulted in concerted efforts aimed at reducing costs of operation while maintaining appropriate levels of quality and accessibility. This project investigates and reports the benefits of utilization management as an integral component of cost reduction efforts. Findings from the literature were applied to cost and workload data experienced by Wilford Hall in fiscal year 91. Results show a potential savings of up to 23.8 million dollars (MEPRS). This paper also suggests a methodology to begin implementation at Wilford Hall as well as any other Department of Defense medical treatment facility.