Eric Demers, CEO of Madaket Health, highlights a critical issue in his latest article published in Solutions Review that is costing the healthcare industry billions: poor data quality. An alarming study indicates that 80% of provider directory information contains errors, leading to massive revenue loss for healthcare payers and increased costs for consumers.
Read the full article in Solutions Review.
The complexity of the health system exacerbates the problem, with outdated Provider Data Management (PDM) processes contributing to inaccurate directories and, consequently, unnecessary healthcare expenses. Patients are often the unwitting victims, with incorrect directory information leading to unwanted bills. The industry spends about $2.76 billion annually to combat this, yet almost $17 billion in healthcare costs can be attributed to associated claims processing mistakes.
Demers advocates for a revamped approach towards data management, emphasizing the need for rigorous data governance and the integration of collaborative, technology-driven solutions. By upgrading and unifying data management methods, healthcare could save over $1 billion each year. As the healthcare sector evolves, prioritizing precise, digitized PDM is crucial to prevent financial drain and ensure reliable care.
