Intentional or not, the current healthcare landscape seems designed to reduce the revenue physicians and hospitals earn per patient, no matter how high in quality the care or the cost in labor and supplies to deliver it. In a parallel development, the reimbursement process for this care is eroding the financial health of providers. Claims remittances commonly take up to 40 days or longer to arrive, leaving providers with few options other than to passively wait or pursue costly fixes such as staffing up internally or hiring third parties to follow up with payers, or communicate with payers via decades-old electronic data interchange (EDI) technology.
The financial toll this is taking is enormous. In 2012, the nation’s healthcare providers spent a cumulative $471 billion on billing and insurance-related activities; money that could otherwise have been redirected to patient care. This inefficient reimbursement climate isn’t just threatening financial performance for individual hospitals and providers. It’s draining the entire healthcare system.
In search of more affordable and effective solutions to payment delays, many provider organizations are automating the payer follow-up process. This white paper examines the claims status automation trend in depth to reveal a clear picture of the technology that is helping providers recapture a timely and efficient billing cycle.