Study: Inefficient billing wastes billions in healthcare dollars
- According to a new trends report by InstaMed, a healthcare payment platform vendor, more than 30% of the estimated $5 trillion a year collected for healthcare payments is wasted.
- The waste can be attributed to inefficient payment processing and costs associated with paper-based billing and administrative processes.
- The report is based on quantitative data derived from the InstaMed Network and qualitative proprietary survey data from more than 100,000 healthcare providers, more than 3,000 payers and more than 1,000 consumers.
According to the report, billing costs are expected to continue to rise unless providers recognize and addresses the critical role of consumer choice, the impact of the digital economy on payment options and data security best practices.
The report concludes that in order to meet consumer demand for payment processing, providers must give consumers options, including mobile technologies, online payment availability and multiple payment acceptance methods. "As the industry continues to evolve, many providers and payers have taken significant steps to adapt to these changes," the report says. "For the industry as a whole to thrive, it must understand today's changing consumer preferences, and apply process and policy changes to their ongoing operations. At the same time, efficiency, payment best practices and enhanced data security will be crucial to their continued success."
- Healthcare Finance News Poor billing options cost billions in wasted healthcare dollars, study finds