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Systemwide Process Improvement
While many hospitals use programs such as Lean and Six Sigma, few have adopted a full-in approach.
This same opportunity exists in non-clinical applications like the revenue cycle..Per AHA, hospital expenditures for 2009 was 724 billion dollars..If we assume a 5% margin the net revenue would be about 760 billion..The average hospital's cost to collect is about 4%..This equates to 30 billion spent on the revenue cycle..Through the application of the HIPAA business transactions,intelligent software and process redesign there is the potential of reducing these costs from 30 to 50%..A savings of 10 to 15 billion dollars a year for the industry..