Business Opportunity
Electronic Claims Processing
Electronic medical claims processing (ECP) is a service offered by small businesses or independent contractors to healthcare providers. The ECP Professional obtains patient information from the healthcare provider, enters it into the MedOffice™ software program, and electronically sends it via modem to medical insurance companies for processing and payment. ECP processing drastically reduces the error rate on claims filed and significantly increases the turnaround on insurance payments to medical providers.
Electronic claims processing eliminates paperwork in the doctor's office and improves cash flow to the practice. On average, ECP claims require just ten working days for receipt of payment. By comparison, manually filed claims often take up to 70 days before receipt of payment due to errors in manual processing. ECP reduces the rejection rate on claims from more than 35% to less than one percent. Therefore, ECP results in the drastic reduction of open accounts receivable and quickly increases the doctor's income.
In 1992 just 5% of healthcare providers were processing their claims electronically. By the end of 1994 that figure had increased slightly to twelve percent. Even today, less than 30% of all medical providers utilize electronic claims processing. Claims processed in the United States escalated from just 5 billion in 1990 to more than 9 billion in 1995 and this figure is steadily increasing.
It is an undisputed fact that the current system of paying healthcare claims is inadequate to handle the estimated 10+ billion claims filed annually. Because of costs and errors, Medicare, who sets the pace for medical insurance, has stated that electronic claims will receive preference over manual claims. There is no doubt that electronic claims processing is an important new industry that has begun a dramatic growth period.
ECP - An Exciting Business Opportunity
