Providence St. Joseph Health, a provider of healthcare service, has acquired Lumedic, a Seattle-based health-tech, and developer of a Blockchain-based revenue cycle management platform. According to the officials, the acquisition aimed to develop a Blockchain platform for claims processing. Providence St. Joseph Health said that it plans to form a new company using Lumedic’s assets and team, which will maintain the Lumedic brand.
Founded in last year, Lumedic utilizes Blockchain technology in renovating the financial operations of healthcare by making more transparency in costs and accelerating the billing and claims process for healthcare providers. Its end-to-end revenue cycle management platform employs distributed ledger technology, smart contracts, and Machine Learning. Through this acquisition, payers and providers related to Lumedic’s network are also able to share trusted information and work together on integrated business processes, and Lumedic will work with Providence St. Joseph Health to travel around additional partnerships with providers, insurers, and others in the healthcare sector. In a statement, Providence St. Joseph Health CFO Venkat Bhamidipati stated that new technologies like Blockchain, Machine Learning, and Artificial Intelligence provide a chance to view the complexities of today’s health systems through different angles. Blockchain technology presents a range of opportunities for the healthcare sector, including opportunities to lessen intricacy, enable trustless collaboration, and generate secure information.
With the arrival and extensive adoption of software systems such as EHRs, billing and claims are still largely manual and there is a high potential for the introduction of errors creating costly inefficiencies. According to a McKinsey analysis, the yearly cost of revenue insufficiency in the U.S. healthcare is over USD500 billion in 2018 alone. However, the Lumedic platform, Mike Butler, Providence St. Joseph Health president of operations and strategy said that will weigh down the administrative burden and allow resources to move to advanced patient care, more patient-centric billing experiences, and lower costs. Providence St. Joseph Health, a non-profit healthcare player, is comprised of 51 healthcare centers and 829 physician clinics serving communities across seven states.