HIPAA’s intention with the use of EDI (Electronic Data Interchange) for conducting medical service reimbursement (to mention a few) was projected by the HHS (Department of Health & Human Services) to cause an immediate cost savings for both the provider and the medical community. But in its implementation, addressing the security and privacy regulations (including the use of a translator or clearinghouse) to process these EDI transactions comes with a necessary budget.
Spend Money to Save Money?
These rules would replace paper-based system with electronic data interchange. Most providers don’t have the technical expertise to ride the transition, thus need either a consultant or a clearinghouse to meet this demand. Both of which cost money. Also, the privacy rule requires a notice of privacy policy be give to the patient and track that every patient has received this notification and understands the new effect this regulation has on the patient’s use of their own medical information.
