Electronic medical records are officially the future of health care. To drive home the point, President Bush set a goal that in a decade every American should have an electronic medical record. The statement echoes a similar call for computerization of health care records in his January 20, 2004, State of the Union address. When the federal government proposes anything that reduces paper, it is news. However, the bigger news is that the technology is here and it works.

In an industry where the overwhelming majority of transactions involve third-party billing, quicker turnaround is the gold that keeps you competitive. In the case of electronic certificates of medical necessity (eCMNs), the savings can be dramatic. It costs about $35 to process a CMN manually, but software savings can drive that down to about $5. As more and more physicians adopt the electronic format and sign up for electronic signatures, providers will start to see the advantages.

Along with better cash flow, the improved efficiency can also lead to better corporate compliance. While compliance is not a problem for many of you, yet another challenge must be dealt with on July 1, 2004, when any electronic claim received in the legacy or national standard format will not be paid for at least 27 days. Instead, these claims will essentially be treated as paper.

Check out Gemma Perry English’s “Business Unusual,” page 40, for tips on how to successfully bill in the new HIPAA format, and prevent interruptions to your cash flow.

Remember, all this technology is supposed to make your life easier and your business more profitable. It may not seem that way at first, but the paperless office concept has backing from the top and powerful tools on the horizon.

Greg Thompson
gthompson@medpubs.com