1 8 th national hipaa summit rick morrison, ceo adminisource/remettrarick.morrison@remettra.com...

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88thth National HIPAA Summit National HIPAA Summit

Rick Morrison, CEORick Morrison, CEOAdminiSource/RemettraAdminiSource/Remettra

rick.morrison@remettra.comrick.morrison@remettra.com

Emerging Medical Banking Models That Emerging Medical Banking Models That Reduce Healthcare Administrative CostsReduce Healthcare Administrative Costs

March 8, 2004March 8, 2004

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Complex IssuesComplex IssuesComplex IssuesComplex Issues

♦ Health care industry has little experience with banking beyond cutting a check and reconciling statements.

♦ Banking industry, as a whole, has little experience with health care and is generally unaware of HIPAA.

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Healthcare Industry ChallengesHealthcare Industry ChallengesHealthcare Industry ChallengesHealthcare Industry Challenges

♦ Timeliness of provider payments

♦ HIPAA- Cost to track provider preferences- Cost of operating two payment systems

1. Print & Mail

2. ERA (& EFT)

♦ Realize return on investment from HIPAA

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Health Plan IssuesHealth Plan IssuesHealth Plan IssuesHealth Plan Issues

♦ HIPAA Dual payment systems avoidance

♦ Provider preferences tracking

♦ Risk of fraud- The chance of having a problem with a check

is 20 times greater than direct deposit- Payments have never been lost with direct

deposit- Direct deposit payments are traceable

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Health Plan IssuesHealth Plan IssuesHealth Plan IssuesHealth Plan Issues

♦ Expedite provider transition from a paper-based practice to an electronic environment

♦ Maintaining communication with providers in an electronic environment

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Provider IssuesProvider IssuesProvider IssuesProvider Issues

♦ Paid faster

♦ Automatic posting of receivables

♦ Access to multiple payers

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Secure Payment ProcessingSecure Payment ProcessingSecure Payment ProcessingSecure Payment Processing

♦ Provider Enrollment- Pre-registration & on-the-fly registration- Bank Account Authentication - Provider preferences online

• Payment delivery• Remittance delivery

♦ Re-association issues

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Health Plan’s Health Plan’s BankBank

Provider’s Provider’s BankBank

HealthcareHealthcareProviderProvider(hospital, clinic, etc.)

One SolutionOne SolutionOne SolutionOne Solution

Dollars and data re-associated

Printed Check, Remittance Advice, or Both

ERA Detail

EFT PaymentInstructions

Health PlanHealth Plan(Alliance Partner)(Alliance Partner)

RemittanceData

Proactive Notification of Payment

Reconciliation File

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Secure MessagingSecure MessagingSecure MessagingSecure Messaging

♦ Value-added product

♦ Encrypted e-mail- Secure method for health plans and providers

to communicate- Includes broadcast messaging

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ConclusionConclusionConclusionConclusion

♦ “Win-Win” business model- Health plans- Health care providers- Strategic alliance partners