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Administrative Costs Contribute to Rising US Healthcare Costs

Writer's picture: RYAN FERGUSONRYAN FERGUSON

In 2016, the US spent $3.2 trillion on healthcare according to the Centers for Medicare and Medicaid Services.

That breaks down to $9,900 per person and 17.8% of gross domestic product (GDP). The costs are growing and it does not guarantee results - the US ranks 37th overall in terms of overall efficiency according to the World Health Organization.

What leads to the rising cost of healthcare in the US? Watch CNN's Dr. Sanjay Gupta discuss it below.... spoiler alert: administrative costs and the rising administrative burden play a leading role in the growing costs.


Studies have found that, on average, it costs healthcare provider organizations an average of $20.52 in administrative overhead to submit a primary care claim to an insurance company. Additionally, it cost the insurance company on average over $40 in administrative overhead to receive the claim and process it to payment.

Between a patient's doctor's office and their insurance company, over $60 is spent in administrative work to generate and process a claim that on average pays approximately $80.

That is what we are trying to fix here at MCC. RemitOne was designed not only to address the rising cost of administrative burden - but to stop it in its tracks while ensuring that documentation and coding are accurate and compliant.

Through the use of RemitOne and MCC's supporting technology-enabled services, we can process the same claim - error-free - for $10 at both ends!

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MCC provides Health Information Management and computer assisted clinical documentation improvement services that pair with innovative technology with leverage Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) to code claims and to analyze and interpret clinical documentation.  Through our proprietary technology and service model, we provide multiple solutions from ambient speech interpretation to complete revenue cycle management. Our goal at MCC is provide a computer free data entry environment to increase patient engagement, improve coding accuracy, reduce provider burnout, and maximize claim revenue and turnaround time.

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