AMA to Start a Campaign against Administrative Waste

The American Medical Association seeks assistance from the business community in order to reduce administrative waste, a major issue of the healthcare industry.  According to the AMA, a lack of standardization of industry processes is the root cause of a loss of $200 billion every year.

Healthcare administrative tasks are complex, redundant and incredibly costly as they are about 10-14% of physicians’ gross incomes.  In order to ease the strain of administrative tasks, planning and designing of efficient processes is required.  In order to achieve this, the AMA is organizing a work group that embraces the labor, business and employer communities.  By simplifying administrative procedures, efficiency will be greatly enhanced.

This administrative simplification campaign by the AMA promotes a uniform, fully automated, industry-wide claims processing system for insurers, physicians and patients; electronic health records EHR systems will make this effort more fruitful.

Moreover, the health reform law requirement will help make the claims process simpler and more transparent by Oct. 1, 2012 as it will necessitate that every health plan use a unique identifier in healthcare transactions.