Modernizing Administration Processes Could Save the Healthcare Industry $33.2 Billion Per Year

Let’s face it, our nation is not getting the most out of the $2.6 trillion we spend on health care. As such, United Health Group’s Center for Reform and Modernization has looked in to ways the industry can achieve substantial cost savings via technology and has discussed them in a recent working paper.  
United Health Group estimates the healthcare industry’s administrative expenditures to be roughly $290 billion per year. If the industry puts their working paper’s suggestions into practice and leverages technology to Applied Industrial Technologies Brands its fullest, the Group estimates a total savings of $332 billion over the next decade. That’s roughly 33.2 billion dollars per-year. Of the proposed savings, an estimated 30 percent will go to health plans.  
United Health Group’s Executive Vice President Simon Stevens stated in a June 30th conference call that the healthcare industry’s manual administration processes cost doctors, hospitals and health plans alike considerable amounts of time and money. In order to illustrate how archaic the healthcare industry’s administrative practices are, he made a Agriculture Degree Courses direct comparison to both the travel and banking industries. In administrative matters, if the processes used in banking and travel were as outdated as those in healthcare, everyone would do all of their banking face-to-face in brick and mortar establishments. Similarly, no one would be able to book travel or find the best travel deals online.  
Among the working paper’s recommended cost saving tactics was the elimination of the paper explanations of benefits issued with each claim. The Group suggested replacing these paper statements with electronic ones similar to the monthly statements banks send out. They also recommended delivering the statements electronically and in a secure fashion instead of mailing them out.  
All of this would reduce the cost of explaining benefits 68% per-claim and produce a $14 billion dollar cost savings over the next decade. The Group also suggested utilizing technologies currently available to automate the entire claims payment process, which could save roughly $109 billion in a decade.
Universal Benefit Plans is ahead of the modernization curve:
At my company, Universal Benefit Plans, we have already implemented several of United Health Group’s suggested modernization tactics with our proprietary double-encrypted HRIS system. HRIS systems help companies save time and money by automating benefit administration and communication processes. If your broker offers an HRIS system, I recommend taking full advantage of it.
If you’d like to learn more about how you can leverage HRIS technology and save money by doing what the healthcare industry should have done years ago, visit my company’s website or give us a call.

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