Healthcare Payers Can Achieve 100% Electronic Payments, Really
Just last year, the Huffington Post published an article by a woman who described her personal experience with paper waste in the healthcare system that occurred over a simple flu shot.
Huffington Post contributing writer Jane Sarasohn-Kahn wrote that she calculated the $28.99 flu shot she received at a pharmacy ultimately cost around $100 when calculating in the administrative costs for printing, mailing and labor. Her calculation took into account two paper EOBs concerning the flu shot, three paper checks that together amounted to the full cost of the shot, and labor costs associated with the process.
This scenario of waste and inefficiency due to paper processes is just one of hundreds of thousands that take place every day. According to the 2016 CAQH Index, which measures the adoption of electronic business transactions in the healthcare industry and accompanying cost savings, $9.4 billion is wasted annually on manual transactions. The report found that:
- A manual transaction costs providers and health plans $3-$11 more than an electronic transaction depending on the complexity of the documentation. Given that roughly 3 billion manual transactions are conducted annually between health plans and providers, that’s a tremendous cost savings opportunity.
- 1.1 million labor hours a week are spent by providers processing manual transactions. This wasted time could be spent providing patient care, as well as taking steps to achieve value-based care reimbursement by applying quality measures to improve patient outcomes and reduce costs.
Go 100% Paperless with Payspan
Everybody in the healthcare industry has been talking about going paperless for decades, yet many health plans still report that the majority of their documentation is processed manually, on paper.
Truly transitioning to paperless is proving to take a lot longer than anticipated. As reported by the 2016 CAQH Index, adoption of manual processes is increasing only modestly from year to year, from 1% to 8% depending on the specific type of transaction. This shows that while health plans want to go paperless and are moving toward the adoption of electronic business processes, they are struggling to get there all the way. They are still moving at a snail’s pace.
Payspan can say with absolute certainty that we have the capability to get the job done. We have come up with a process to move health plans to paperless communications with their providers quickly. Payspan can show that a customer with a 90% ACH adoption rate and 250,000 members can save $7.81 per member and $1.8 million annually.
We can help you shift your providers to electronic fulfillment over roughly two months via Go Green campaigns that use a combination of print, email, web and voice to promote EFT enrollment. We offer the largest healthcare payment automation platform nationwide that connects 600 health plans with 1.3 million provider payees.
Find out how Payspan’s healthcare payments network can securely automate your payments, increase provider satisfaction and drive down cost. Together, we can make paperless a reality. We guarantee it.