CINCINNATI, Jan. 29, 2014 /PRNewswire/ -- The healthcare industry has been slow to adopt electronic payment processes, despite significant benefits including streamlined processes, lower operating costs and increased security. That's about to change, according to KeyBank healthcare bankers working with healthcare providers.
Universal operating rules that stem from the landmark Patient Protection and Affordable Care Act took effect Jan. 1, 2014 and provide healthcare providers solutions to problems that stymie electronic payment process adoption, according to Scott Krah, AAP, KeyBank vice president and senior product manager, Healthcare Payments, KeyBank Enterprise Commercial Payments.
"We're about to see major changes in how healthcare providers manage the payment process, and that will translate into fewer healthcare dollars dedicated to administrative costs," Krah said. According to industry research, between 10 and 12 percent of a medical practice's revenue goes to billing and insurance-related costs.
Healthcare providers should prepare for the new healthcare payments environment by understanding the new rules and the payment options the rules create. Here are some simple steps healthcare providers can take now to take full advantage of the benefits of electronic payment processing:
- Tap banks, vendors, industry associations and provider associations for more insight into the rules and opportunities
- Talk to your bank about receiving electronic fund transfers via Automated Clearing House (ACH) and electronic payment processes.
- Starting with higher volume payers, contact each health plan and complete enrollment forms for receiving EFT payments.
- Streamline your back office processes to support electronic fund transfer.
Find more information on Key.com on how to prepare for the new PPACA electronic payment environment.
Key traces its history back more than 160 years and is headquartered in Cleveland, Ohio. One of the nation's largest bank-based financial services companies, Key has assets of approximately $92.9 billion as of Dec. 31, 2013.
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