Medical and dental practices that implement electronic solutions can streamline receivables and insurance processing.
In today's raging healthcare debate, one fact is often overlooked: More than 30 cents of every dollar spent on healthcare currently goes toward administration, according to the 2007 Health Care Study by Chadwick Martin Bailey and the PNC Financial Services Group. That's more than $630 billion annually. Part of this cost, providers and insurers agree, is generated by inefficiencies in providers' billing and receivables processing, an estimated 90 percent of which is done by paper, fax or telephone.
If that sounds like your practice, you're not alone. As recently as 2008, only four percent of U.S. physicians had a fully functional electronic health records system, and just 13 percent had a basic one, according to the online edition of the New England Journal of Medicine. Experts suggest that the adoption of information technology has been slowed by the expense of implementation.
But the barriers are beginning to crumble. Integrated solutions now create an automated data chain between providers and payers. From the time a patient registers at the front desk until the account is settled, these systems link each transaction to its predecessor in the revenue cycle. A claim is compared to the original eligibility transaction, the payment compared to the claim, and all transactions evaluated in real time against each payer's contract terms.
Eliminating the paper trail frees office staff to focus on activities that increase revenue, reduce costs and improve cash flow. So the winners in this technological revolution are not just healthcare providers, but patients, who reap the benefits of lower costs, greater transparency and an increased investment in care.
PNC's Healthcare Advantage is one such system, providing healthcare practitioners with customizable online tools for eligibility and billing as well as receiving, posting and reconciling healthcare receivables. Learn about PNC's solutions for healthcare providers.
Was this helpful? You may also be interested in this related PNC resource:
Playback our May 6, 2010 Healthcare Professionals Webinar:
Verifying Patient Eligibility: How to accelerate the check-in process and receive payments faster.