Electronic Data Interchange (EDI) is the exchange of business information in an electronic and standardized format. This electronic exchange is used instead of a paper document transfer for claims, enrollments, payments, and all other HIPAA transactions. Organizations who exchange this information are called trading partners. One example would be the interaction between a healthcare provider and a health plan.
In other industries business documents such as invoices and purchase orders are exchanged electronically. Because EDI standardizes the messaging format between businesses, the process simplifies interpretation and handling. With EDI, manual data manipulation is kept to a minimum and while reducing administrative costs associated with manual exchange. EDI capable organization can dramatically improve efficiency moving toward a “paperless” exchange.
EDI replaces countless emails, faxes, phone calls, and postal mail messages. This results in a dramatic improvement in responsiveness and document accuracy. Perhaps the most valuable benefit of EDI is improved communication speed. Organizations switching from traditional paper document exchange to electronic data transfer saves time and money.
Healthcare EDI Processing Software
Healthcare EDI Software is an EDI data processing software that allows healthcare organizations to produce and process valid EDI transactions, onboard trading partners, and store payment and claim data.