1. Presented by: Marla K. (Smith) Moszer Globe University August 31, 2011

2. The Government’s influence to use electronic payments in Health Care The Government’s influence to use electronic payments in Health Care Private payers’ convenience with electronic payments & increased collectability Private payers’ convenience with electronic payments & increased collectability The use of electronic payments in a large facility vs. a small facility The use of electronic payments in a large facility vs. a small facility The future of electronic payments in Health Care The future of electronic payments in Health Care

3. Major Concerns Rising Cost of Health Care Increasing Political Control

4. History of Electronic Payments Western Union 187 1 (2009) Electronic Data Interchange (EDI) & Electronic Funds Transfers (EFT) 1970’s Credit Card Payments in the 1980’s The 1990’s – a time for advancement

5. Can Electronic Payments Help?

6. The Government Health Insurance Portability & Accountability Act (HIPAA) 1996 Administrative Simplification Compliance Act of 2001 Government payments exclusively electronic Health Care Reform (“ObamaCare”) by 2014

7. The Private Payer & Electronic Payments Common Methods of Electronic Payments Credit Cards Automatic recurring debit “77% of providers say patient responsibility is on the rise” (InstaMed, 2011) (Downey & Hanson, 2011)

8. Electronic Payments Large vs. Small Facility Allergy & Asthma Specialty Clinic Rice Memorial Hospital

9. The Large Facility Rice Memorial Hospital Willmar, MN Jackie Hinderks, Director of Revenue & Reimbursement “Eliminate paper!” Jackie Hinderks

10. Electronic Payments at The Large Facility Receivables Credit Card Payments In Person Online Payments Credit Card E-check Day or Night without making an extra trip Automatic Payments Finance charge less than credit card Reduces time & paperwork

11. Electronic Payments at The Large Facility Reimbursements Electronic billing Paper Statement Currently 350-page report All day to post (Blind et. al., 2007) Inefficiencies without bundling “…it always makes sense to do more with less.” – Hinderks One day, all facilities can be joined electronically. (Blind et. al., 2007)

12. Electronic Payments at The Large Facility Payables Direct payments to vendors Direct deposit of payroll Prepaid debit card option No printing or postage with online paystubs Paycheck gets to the right person Not lost in the mail More dependable

13. The Small Facility Asthma & Allergy Specialty Clinic, Willmar, MN Jim Ellingson, Co-owner/Office Manager Positive attitude toward electronic payments

14. Electronic Payments at The Small Facility Payables Vendor payments online Saves around $2.00/payment Receivables Credit Card Payments Recurring Automatic Payments Convenience More Manageable for Patient Saves Time & Money

15. Electronic Payments at The Small Facility Reimbursements Insurance coding electronically Same service applies payments to accounts automatically Takes 3 days to 2 weeks More speedy than self-pay Monthly Fee + 6-month membership

16. Electronic Payments at The Small Facility Complaints Reimbursements not instantaneous Recurring payments can be returned NSF or Closed Account Little extra effort to collect Government involvement Can’t handle their own debt Putting the little guys out of business * (EPCOR, n.d.)

17. Electronic Payments Large vs. Small Facility Small Facility Specialty Clinic Positive review of Electronic Payments Costs = Expenses Saves Time & Money Little negative to say Pushing for technological advances to improve efficiencies Positive review of Electronic Payments Costs = Expenses Saves Time & Money Less cost efficient for smaller clinic than large facility Difficult to keep up with legislation & upgrades Convenience is worth cost Large Facility Hospital

18. Expenditures of the Health Care Industry 30 ¢ on the dollar 1% of administration costs $2.5 Trillion in Health Care Expenditures 2009 (Toutman et. al., 2010)

19. Conclusion Relationship Electronic payments  Health Care Benefits FinancialCompliance Effectiveness of CollectionsHealth Care Reform Increasing EfficiencyAdministrative Simplification

22. Blind, J., Hatch, T., Lauer, E., Lazenby, G., & Slater, J. (2007, June). Provider Tips for Moving to Electronic Payment Receipt and Reconciliation. HFMA Executive Roundtable, (June 2007), Downey, D. E., & Hanson, S. (2011, April 4). Building a Bridge to Healthcare Payments.NACHA. Retrieved from http://healthcare.nacha.org/financial-institution-resources/presentations/building- a-bridge-to-healthcare-payments-how-banks-providers-work-together/ Ellingson, J. (2011, August 13). Electronic Payments at Asthma & Allergy Specialty Clinic. Interview by M. K. Moszer. Capstone Paper by Marla Moszer. Globe University, Richfield, MN. ACH Statistics. (n.d.). Retrieved August 27, 2011, from EPCOR website: http://www.epcor.org/imis15/EPCOR/ContentAreas/Resources/NACHA_Rules/ACH_Statistics.aspx Administrative Simplification Compliance Act Enforcement Reviews. (2005, December 14). Retrieved August 8, 2011, from U.S. Department of Health & Human Services website: https://www.cms.gov/ElectronicBillingEDITrans/04_Administrative%20Simplification%20Complia nce%20Act%20Enforcement%20Reviews.asp Hinderks, J. (2011, August 3). Electronic Payments at Rice Memorial Hospital. Interview by M. K. Moszer. Capstone Paper by Marla Moszer. Globe University, Richfield, MN. Trends in Healthcare Payments (Annual Report: 2010). (2011, March). Retrieved from InstaMed website: http://www.instamed.com/news-and-events/trends-in-healthcare-payments-annual- report-2010 Troutman, J. W., Lisi, D., & Mayerick, B. C. (2010, April 26). E-Payment Cures for Healthcare.NACHA, Herndon, VA. History. (2009). Retrieved August 13, 2011, from The Western Union Company website: http://corporate.westernunion.com/history.html

23. This research was conducted as a Capstone project of Marla Moszer being part of her coursework to achieve a Bachelor’s degree in Health Care Management from Globe University. Ms. Moszer is also an Accredited ACH Professional having earned her certification through NACHA in 2007. Correspondence concerning this article should be addressed to Marla Moszer, 207 Stearns Avenue, Paynesville, MN 56362. Contact: mikkiart@gmail.com