Availity Blog

The Administrative Cost of IT System Fragmentation for Health Plans and Providers is Unsustainable


7.31.2017 By Jeff Chester, SVP and Chief Revenue Officer


On this journey to value-based care, providers and health plans agree that collaboration is critical to their success. But significant investments in proprietary IT systems over time—for payers and providers—have resulted in highly fragmented systems that stifle collaboration and drive up administrative costs. At almost $0.15 per dollar, the cost of administrative waste in healthcare today would cripple most other industries.

To learn more about the state of health plan and provider collaboration and its correlation to administrative waste, Availity conducted an original research study. More than 40 health plans and 400 practice- and facility-based providers participated, indicating where technology might improve collaboration the most.

Here are a few highlights from the study.


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