By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Why Healthcare is Finally Going Green
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Why Healthcare is Finally Going Green
BusinessNews

Why Healthcare is Finally Going Green

JuddStevens
JuddStevens
Share
4 Min Read
SHARE

Whether it’s paying a cable bill, mortgage, cell phone bill or other monthly recurring payment, consumers have been increasingly replacing paper check payments with online bill pay technologies for the past decade.  Healthcare, often dubbed as being ten years behind other industries technologically, had a recent breakthrough in the adoption of electronic payments.  The Department of Health and Human Services (HHS) recently released new rules on the electronic fund transfer (EFT) stand

Whether it’s paying a cable bill, mortgage, cell phone bill or other monthly recurring payment, consumers have been increasingly replacing paper check payments with online bill pay technologies for the past decade.  Healthcare, often dubbed as being ten years behind other industries technologically, had a recent breakthrough in the adoption of electronic payments.  The Department of Health and Human Services (HHS) recently released new rules on the electronic fund transfer (EFT) standards, a move that is projected to save the system billions of dollars and pounds of paper.

The new rules establish common interchange standards to streamline the format and data content of a transaction from a health plan (or payer) to a provider’s bank for claim payment and issuance of an electronic remittance advice (ERA).  The ERA is a notice of payment sent to providers to help reconcile electronic payments with the associated claim(s).  Historically, with minimal EFT volume, providers struggled with the reconciliation function, but the new regulations will require the use of a trace number that automatically matches the two.

Why has EFT payment adoption been slow to date and how does future adoption increase?  Despite the majority of payers possessing EFT capabilities today, providers have been slow on the uptake because payments are submitted in varying data formats making the processing and reconciliation very difficult.  With the new HHS rules, a standard data set will allow providers to rely on one system and/or format to take in and reconcile payments.  Payers are motivated to implement electronic payments for a variety of reasons, but most predicated on the associated cost savings.  I believe we will increasingly see payers forcing the transition within their provider network – perhaps even charging providers fees to cut a check.

More Read

Collaborative News
Challenges of Stage 2 Meaningful Use Require More Allies
Healthcare Spend at Historic Low
4 Easy Rules for Using Numbers in Titles
What Sets PCMH Apart from Other Healthcare Models?

Benefits of transitioning to electronic payments:

  • Faster revenue cycle, reduced AR, and improved collection metrics for providers
  • Increased productivity – more claims with less staff
  • Reduced potential manual errors
  • Increased business intelligence opportunities

Perhaps the most important benefit is increased business intelligence.  Traditional paper checks limit payers (and providers) ability to mine data as there really isn’t much data associated with a paper check or image.  However, EFT payments create new and unique opportunities to layer business intelligence and analytic solutions on the payment data sets.  Some of the obvious low hanging fruit is Fraud, Waste and Abuse analytics which is a huge issue in healthcare with large opportunities for savings.

The healthcare system is finally closing the payment technology gap which will save billions of dollars, increase efficiency, and create new business opportunities to make healthcare smarter.  Let me know what you think.

Judd Stevens

Judd Stevens is an associate at TripleTree covering the healthcare industry, specializing in the impacts and transformation of health plans in a post-reform world.  Follow Judd on Twitter or e-mail him at jstevens@triple-tree.com.

 

TAGGED:electronic payments
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

a woman walking on the hallway
6 Easy Healthcare Ways to Sit Less and Move More Every Day
Health
September 9, 2025
Clinical Expertise
Healthcare at a Crossroads: Why Leadership Matters More Than Ever
Global Healthcare
September 9, 2025
travel nurse in north carolina
Balancing Speed and Scope: Choosing the Nursing Degree That Fits Your Goals
Nursing
September 1, 2025
intimacy
How to Keep Intimacy Comfortable as You Age
Relationship and Lifestyle Senior Care
September 1, 2025

You Might also Like

Pharma Phorum
BusinesseHealthSocial Media

LinkedIn Influencers: Good or Bad for Pharma?

April 3, 2014
Image
Global HealthcareMobile HealthNews

Mobile Health Around the Globe: Barcelona – Interview With Jorge Juan Fernandez

April 9, 2012
healthcare marketing tips
Business

6 Critical Healthcare Marketing Tactics to Win Over New Patients

November 13, 2020
cvs tobacco free
BusinessNewsPublic Health

No More Tobacco at CVS

September 5, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?