Which statement describes the difference between a referral and an authorization in social work practice?

• A. A referral directs the client to another service; an authorization is formal approval by a payer or agency for services.
• B. A referral is formal approval by payer.
• C. An authorization directs to another service.
• D. Referral and authorization mean the same.

Answer: (A)

Understanding the difference between a referral and an authorization is about what action is being taken and for what purpose in serving the client. A referral is about directing the client to another service or resource—an introduction to someone who can meet a need the current setting doesn’t provide. An authorization is the formal approval from a payer or agency that allows or funds the services to be delivered.

For example, you might refer a client to a community housing program to address shelter needs, which helps connect them to a resource that specializes in that area. If you then bill for therapy or other services, you typically need an authorization from the client’s insurer or the funding agency to authorize payment for those services.

That distinction is what makes the statement in focus correct: a referral directs the client to another service, while an authorization is formal approval by a payer or agency for services. The other options mix up the roles—referral isn’t formal payer approval, and authorization isn’t simply directing to another service, and they are not the same thing.