When your CH drops it to paper because they don't have the payer in their TP
list....

William,
What you have suggested has certainly not escaped our thought process here.
While we would eventually like to exchange all of our transactions directly
with the payers, the reality of the situation is rather blindingly obvious
to those who care to look (and i'm quite frankly amazed at the number of
people who should be looking that aren't...).  We have created our "top 50"
list of payers, which account for about 93% of our total volume, have sent
them a questionnaire about 4 months ago, and are just now preparing to send
to them RFIs regarding their EDI requirements.  For the vast remainder we
are certainly hoping to find a VAN willing to take them on, and will be
preparing an RFP to that effect in the spring.

We presently use 5 different clearing houses for our gov't and commercial
claims, and have no idea how many secondary CHs and VANs get into the act
now, because the "first-hop" CHs shield us from that information (not that
we've asked, which we haven't).  The other interesting fact that I learned
late last week is that one CH that we use drops many of the "electronic"
bills to paper and mails them when we send to a payer not in their database
(that should fly well with the HIPAA auditors...).  I'm now trying to find
out if that is a common practice with the others.

With the privacy requirements looming, however, we've certainly got to
become more careful, and that means for us a new business model that has
many fewer hands playing with the transactions (both directions).  I'm
actually trying to determine whether or not we can bypass the CH / VAN and
have all messages from the payers to us sent directly.  It'll be part of the
RFP when we get it ready.

Dave Minch
T&CS Project Manager
John Muir / Mt. Diablo Health System
Walnut Creek, CA
(925) 941-2240

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