Providence St. Joseph acquires blockchain-enabled revenue cycle solution

Providence St. Joseph Health acquired Lumedic, a revenue cycle management platform based on blockchain technology.

The 51-hospital Providence St. Joseph system plans to form a company that will maintain the Lumedic brand and operating approach. They look to explore other partnerships with providers, insurers and other stakeholders across the industry. The Renton, Wash.-based system’s goal is to inject efficiency and interoperability into what are often archaic systems of collecting, analyzing and distributing claims and billing.

Blockchain technology can enable the hospital, patient and insurer to view the same rundown of services and expedite claims processing. (See cover story, p. 20). Rather than waiting weeks to settle claims and generate explanation of benefit forms, the patient and the insurance company would know the portion of the bill they are responsible for at the time of discharge. Smart contracts can automate negotiations, as long as a pre-defined set of rules are met.

Lumedic will improve the coordination of financial transactions between payers and providers, said Dr. Rhonda Medows, executive vice president of population health for Providence St. Joseph.