Uses of Electronic Data Interchange for the PtoP Process
Kaiser Permanente of Southern California is a pioneer in trying to cut medical costs. One more way to do that is through the accounts payable and cash disbursements process. The Southern California region alone processes more than 1 million invoices and 800,000 claims with over 500,000 payments. A small cut in the cost of processing each transaction adds up quickly. The solution was to move to EDI for its patient care providers—both inside and outside the managed care program. Kaiser implemented the ANSI X12 837 healthcare claims standard specifically designed for the detailed health care information required for claims processing. In cases where the provider only accepts a check, check processing has been outsourced at a savings of 35%–40%. For vendors who accept electronic funds transfers (EFT), the savings are even greater.