A new survey by banking firm PNC Financial Services has found that claims and billing administration consumes nearly one-third of the funds patients pay into the healthcare system. (And given the obstacles providers face in getting paid, this statistic won't surprise anyone reading FierceHealthcare.) In the study, hospital executives reported that one in five claims is delayed and that 96 percent of all claims must be submitted more than once. One-third of hospital and health plan executives, meanwhile, said that their organizations could save $1 million or more a year if they improved claims, billing and payment processes. The same study found that patients believe (rightly or wrongly) that the administrative overhead number should be more like 10 percent. Eighty percent of consumers surveyed said they'd like to see administrative costs broken out on their bill.
To get more detail on the survey (including CDHP predictions):
- read the PNC press release