Waste in healthcare is rampant. The Trends in Healthcare Payments: Fifth Annual Report: 2014 from InstaMed has found just how much inefficient billing practices cost the industry.
The healthcare payment market is expected to reach a $5 trillion value by 2022, but approximately 30 percent of that amount is wasted due to inefficient billing processes, such as paper billing, according to the report.
If the consumer payment process were streamlined, healthcare providers could realize significant savings and improved cash flow. Currently, nearly 20 percent of consumers have unpaid healthcare bills because of the disjointed payment process.
If providers were to implement best practices for electronic remittance advice and electronic funds transfer, the healthcare industry could stand to save up to $8 billion, according to the report.