Electronic Funds Standard to Save up to $4.5B in Administrative Costs

New standards for electronic funds transfers in healthcare, part of the Patient Protection and Affordable Care Act, are expected to save up to $4.5 billion in administrative costs for hospitals, physicians and other areas of the healthcare sector, according to a news release from the Department of Health and Human Services.

The standards establish how healthcare providers can use electronic systems to determine a patient's eligibility for health coverage and check on a health claim status, according to the release.

"The less time a physician has to spend on paperwork is that much more time that can be devoted to patient care," CMS Acting Administrator Marilyn Tavenner said in the release. "Having standardized procedures across the healthcare industry can only lead to lower costs and greater efficiencies all around."

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