RENTON, Wash., Feb. 11, 2019 /PRNewswire/ — Providence St. Joseph Health, one of the nation’s largest health systems, today announced at the 2019 Healthcare Information Management Systems Society (HIMSS) Annual Conference & Exhibition in Orlando, Fla. that it has acquired Lumedic, a next-generation revenue cycle management platform based on blockchain technology. Providence St. Joseph Health will be the first integrated provider-payer system to establish a scalable blockchain platform to transform claims processing and enhance interoperability between providers and payers.
“New technologies like blockchain, artificial intelligence, and machine learning give us an opportunity to view the complexities of today’s health systems through a different lens,” said Venkat Bhamidipati, Providence St. Joseph Health chief financial officer. “Our acquisition of Lumedic’s innovative platform is yet another example of how we are pursuing all avenues of transformation, allowing us to redirect unnecessary spend towards either patient savings or care.”
Reducing inefficiencies in revenue cycle management (RCM) has long been a challenge for the health care industry. Revenue cycle inefficiencies were responsible for more than $500 billion in U.S. health care costs in 2018 alone, largely due to industry complexities and manual processes, according to a McKinsey & Company analysis. Traditional health system and hospital revenue cycle processes frequently rely on physical correspondence and fax machines for sending medical records, legacy systems for data storage, and employees who spend hours calling insurers on the status of claims.
Based on blockchain, Lumedic builds on distributed ledger technology, smart contracts, and machine learning to deploy an efficient, secure, and trusted end-to-end platform for revenue cycle management. Payers and providers connecting to Lumedic’s intelligent network will be able to seamlessly share trusted information and collaborate on integrated business processes, reducing inefficiencies in the health care system and improving the patient experience.
Providence St. Joseph Health has acquired Lumedic’s assets and team to form a new company that will maintain the Lumedic brand and operating vision. Lumedic will work with Providence St. Joseph Health to explore partnerships with providers, insurers, and others in the health care field.