What is Electronic Data Interchange in Healthcare?

An electronic data interchange is typically a form of technology that was originally aimed to keep ‘things’ safe from getting stolen or manipulated while making an online exchange.

Things here, refer to the credentials, personal information, and confidential information being shared, or anything that is supposed to be kept in between two peers only.

However, with time, the threat of security has enhanced so much due to cross-border exchanges, that EDI did not remain singularly used by one sector but has been involved in almost every other sector including healthcare being the largest user of EDI amongst others.

In healthcare, there are different types of EDI services i.e. EDI via VAN, Web EDI, Mobile EDI, etc. However, EDI 834, EDI 856 are different forms of transactions or standards that are to be followed by the users or careers to make exchanges.

You can understand it in this way, that there is a technology named EDI, which is used for electronic transmission. But to send specific information, a specific standard has to be followed.

Just for an example, assume EDI 834 as a ticket to be used to apply for the registration only, and EDI 856 is a ticket to be used when the money is paid to complete the registration. In both cases, the electronic medium will be the common technology, to differentiate and identify the purpose and build a singularity, the standards are predefined by the ANSI.

Similarly, EDI in healthcare is used when a person/beneficiary pays to get enrolled for a healthcare plan and gets the receipt. 

Why Is EDI Essential In The Healthcare Sector?

EDI service providers play an important role in keeping the stealable data safe, and that is the main purpose of introducing EDI in the healthcare sector. There used to happen frauds despite having an electronic mode of transactions than imagine not having EDI and the then circumstances.

EDI technically tries to save the information from getting leaked by involving a middleman i.e. a value-added network in the form of a computer in between the two peers concerned with the exchange. The middlemen, which is termed as VAN adds value to the data which means for encryption. 

Hashing: The Encryption Method

Value addition in EDI basically refers to the encryption provided to the crucial information. In this method, the data is hashed in such a way that even if it gets stolen, the hashed data would not leave the original data exposed. 

Therefore, the HASHING method is considered as one of the most secure encryption with near to zero possibility of getting the data stolen.

What Is HIPAA?

HIPAA is an act or law or statute of the federal government of the United States that mandates the standards and protocols for the healthcare sector. It stands for Health Insurance Portability and Accountability Act and has been in implementation since 1996. Before that, the companies used to use their codes for particular exchanges, which resulted in troubling confusion, which was undesirable.

In the world of virtual healthcare and online consultations, the exchanges in healthcare are supposed to be considered as well-executed quicker than quickest for the sake of mankind. Fraud and undesirable delays are neither acceptable nor should be entertained ever in any sector.