Zelis Digitalizes $500M Hospital Payments – Becker’s Review
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Zelis partnership Streamlines Healthcare Payments for Arizona IDN
Published August 24, 2024, at 10:48 AM MST
In the complex world of healthcare finance, trust and openness between payers and providers are often elusive. But for one Arizona-based integrated delivery network (IDN), partnering with Zelis-a leading provider of healthcare technology solutions-marked a turning point. By implementing Zelis’ Advanced payments Platform (ZAPP), the IDN transformed a fragmented, paper-dependent payment system into a streamlined digital ecosystem, saving time, cutting costs, and strengthening payer-provider relationships.
Recently recognized with a KLAS Points of Light Award on August 15, 2024, the initiative offers a blueprint for how healthcare organizations can unify financial workflows and foster collaboration at scale.
Fragmentation and Friction with Outdated Systems
The IDN faced meaningful challenges with a payment system reliant on manual processes. Paper checks were commonplace, leading to payment delays of up to 60 days, increased fraud risk, and significant administrative costs.The lack of real-time data exchange between multiple payers and providers created friction, eroded trust, and made reconciliation a costly and inaccurate process.
According to a McKinsey report, administrative costs account for 25% of total US healthcare spending. Modernizing payment systems is crucial for reducing these costs and improving efficiency.
Specifically, the IDN struggled with:
- Slow Payment Cycles: Up to 60-day delays in receiving payments.
- High Administrative Burden: Significant staff time dedicated to manual processing of paper checks and reconciliation.
- Increased Fraud Risk: Paper-based systems are more vulnerable to fraud and errors.
- Lack of Transparency: Difficulty tracking payment status and resolving discrepancies.
Zelis’ Advanced Payments Platform (ZAPP) to the Rescue
Zelis’ Advanced Payments Platform (ZAPP) provided a solution by automating and digitizing the IDN’s payment processes. ZAPP integrates with multiple payers and providers,enabling real-time data exchange,automated reconciliation,and faster payment cycles.
Key features of ZAPP include:
- Automated ERA/EFT processing: electronic Remittance Advice (ERA) and Electronic Funds Transfer (EFT) streamline payment posting and reconciliation.
- Real-Time Payment Visibility: Providers can track payment status in real-time, reducing inquiries and improving cash flow.
- fraud Detection and Prevention: Advanced analytics identify and prevent fraudulent claims.
- Denial Management: Automated denial management tools help providers resolve claim denials quickly and efficiently.
With 80% of payments now digital, the IDN is aiming for full adoption. Zelis continues to refine its platform, integrating AI-driven analytics and expanding its payer network to support broader collaboration.
