Electronic Data Interchange (EDI)
EDI (Electronic Data Interchange) refers to the computer-to-computer transmission of claims and other documentation between eMD and healthcare service providers.
EDI was developed to solve the problems inherent in paper-based transaction processing and in other forms of electronic communication. In solving these problems, EDI is a tool that enables organizations to re-engineer information flows and business processes.
Problems with the paper-based transaction system are:
- Time delays. Delays are caused primarily by two factors. Paper documents may take days to transport from one location to another. In addition, manual processing delays are caused by the need to key, file, retrieve, and compare data.
- Labor costs. In non-EDI systems, manual processing is required for data keying, document storing and retrieving, sorting, matching, reconciling, envelope stuffing, stamping, signing, etc
- Errors. Because information is keyed multiple times and documents are transported, stored, and retrieved by people, non-EDI systems tend to be error prone.
- Information Access. EDI permits user access to a vast amount of detailed transaction data—in a non-EDI environment this is possible only with great effort and time delay.