One-third of healthcare administrative spending could be automated and save $13.3 billion, according to a report by CAQH.
In fact, $40.6 billion out of the $350 billion of administrative healthcare costs is attributed to just eight transactions. Of that $40.6 billion, automation can further savings, saving $13.3 billion.
“While a greater percentage of business transactions are now conducted electronically, the U.S. continues to spend more on healthcare administration than any other nation,” Kristine Burnaska, director of research and measurement at CAQH, said in a statement.
The findings were published in the 2019 CAQH Index, which outlines the potential savings and efficiencies of automation in healthcare and measures progress in reducing administrative transaction costs and burdens in the medical and dental industries.
Already, the industry has seen major progress through automating administrative tasks, totaling $102 billion annually in savings. However, bigger opportunities remain. Specifically, $9.9 billion could be saved by medical plans and providers and $3.4 billion could be saved by the dental industry, according to CAQH.
“While the industry has reduced administrative complexity by automating fee-for-service processes, our healthcare system is evolving,” April Todd, senior vice president of CORE and Explorations at CAQH, said in a statement. “As the industry transitions to value-based payment models, and the need for interoperable administrative and clinical systems becomes more acute, we need to adapt in order to maintain and improve upon the progress made to date.”
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Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."