Healthcare EDI, What Makes it Different?
Electronic Data Interchange in Healthcare differs from other businesses in many ways.
- Legal Compliance. With HIPPA and ACA requirements, EDI in healthcare must be secure and accessible only to those who need it. Is your EDI HIPPA complaint? How do you know?
- Supply Chain and Materials Handling that lacks good controls. With most hospitals outsourcing their supply chain functions (according to HIDA, the Health Industry Distributors Association estimates 100% of hospitals use distributors in some capacity), delivery is 24 hours or less. Hospitals have poor technology and processes for inventory management. They struggle with overstocking, stock-outs, high supply costs, high labor costs and dissatisfied clinical staff.
CFO’s struggle with decisions on ERP systems to be used with inventory management. The supply chain module of the ERP systems forces hospital administrators to create workflows that are labor intensive and drive up supply chain costs. User visibility into inventory amounts and locations does not exist. Current systems are not designed to give the users the ability to know count, location, re-order quantity points and purchasing decisions.
It is estimated that 70-80% of all items in the hospital supply cost less than $20 each. Major dollars are consumed to manage these small ticket items. The remaining items can be managed with bar coding, cabinets, and RFID-tracking systems. This makes sense for items that are either regulated or high-value product. Weight control and/or Kanban (two-bin) systems can be employed for the low value- high volume items. The two-bin approach provides visibility into supply management while reducing labor costs of both clinicians and supply technicians.
- Insurance Claims. This is currently the point where EDI is most commonly used in Healthcare. Making sure these claims are handled in a HIPPA and ACA compliant way is most important.
Offsite EDI can help with any or all of these ways EDI touches the healthcare industry. Get Help Now!