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The Benefits of Electronic
Billing
The introduction of electronic billing
has enabled the health care industry to reduce
costs associated with business to business communications.
These cost reductions have played an important
role in the health care industry’s ability
to maintain a competitive edge. The financial
applications "accounts payable" and
"accounts receivable," are two of the
specific business functions that have produced
reduced processing costs.
The financial transaction is broken down into
two basic functions: "accounts payable"
and "accounts receivable," better known
as "origination" and "receipt,"
respectively. These functions are very labor and
paper intensive. Documents such as paper checks,
claims, and EOB remittance advice reports are
shuffled between various health care organizations.
The information exchanged includes handling, probably
through multiple departments, and data entry at
each health care organization. The cost incurred
with those functions can be drastically reduced
with the implementation of a financial EDI program.
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