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Payformance Signs Eleventh Major Health Plan
Jun 12, 2007 (10:06 AM EDT)
JACKSONVILLE, Fla., June 12 /PRNewswire/ -- Payformance(R) Corporation, the nation's leading provider of Electronic Funds Transfer (EFT) and Electronic Remittance Advice (ERA) services, today announced the signing of the eleventh health plan to commit to the services.
Implementations of the Company's electronic claim settlement solution are complete for eight major healthcare insurance plans and implementations are underway for three additional plans. The plans include three of the nation's Blue Cross(R) Blue Shield(R) organizations, two Medicaid HMOs, and six leading commercial insurance plans.
"The healthcare industry is choked with paper, about 7.5 billion sheets a year in the settlement process alone," said Dwayne L. McAfee, President and CEO of Payformance Corporation. "That's enough paper to fill over 2,000 hospital rooms. Payformance is helping our customers eliminate this waste. In just three months, one of our Medicaid payer customers moved from paying no claims electronically to settling more than 46 percent of claims with EFT."
The claim settlement solution, PaySpan(R) Health, not only moves claims payment from paper to Electronic Funds Transfer but seamlessly links each payment to an Electronic Remittance Advice, giving healthcare insurance plans and their providers an effective means to reduce costs, errors and administrative burden.
Key Statistics -- Payformance has contracts with 11 health plans -- The 11 health plans serve more than 12 million members -- Over 8,000 providers have accepted invitations from payers and registered to receive EFT and ERA -- Over 140 million claims will be settled through the PaySpan Health service in 2007
Payformance customers can expect to save between $0.23 and $0.42 per claim, resulting from reduced provider service expenses and reduced printing and postage costs. The service is free to providers and the benefits for them are even more significant than for payers - between $1.15 and $2.94 per claim settled electronically. For a payer previously settling 25 million claims via paper, this translates into $5.8 to $10.5 million in potential annual savings, and up to $73.5 million in potential annual savings for their provider community.
About Payformance Health
Payformance is the industry's most innovative provider of Electronic Funds Transfer and Electronic Remittance Advice solutions. Its flagship product, PaySpan Health, builds on the company's more than 20 years of experience in developing payment solutions to meet the needs of healthcare organizations and corporations. By automating the last phase of the healthcare claims process - payment and remittance - PaySpan Health optimizes funds transfer and remittance delivery and brings the promise of HIPAA administrative simplification to reality. Payformance is proud to be the Blue Cross and Blue Shield Association preferred partner for electronic payment and remittance advice services. Learn more at http://www.payformancehealth.com
Jay Moore, (410) 821-8220
CONTACT: Jay Moore of IMRE, +1-410-821-8220; or Dan Brown of PayformanceHealth, +1-904-588-7073
Web site: http://www.payformancehealth.com/