GE & Accenture Tie Up To Revive US Healthcare Lost Revenue

GE Healthcare, a division of General Electric Company (NYSE:GE) , recently introduced a new offering in collaboration with Accenture plc (NYSE:ACN) to help improve medical claims processing and related cash flow for healthcare providers. The collaboration was declared at the GE Healthcare’s annual software summit held in Phoenix, AZ.

The new offering is likely to enable healthcare providers save around 25–50%, on an average, on their cost incurred to re-process denied claims. Alongside, this alliance is a strategic step, which will enable General Healthcare deliver best-in-class service to its customers, by partnering with the best in the industry.

Per the collaboration, GE Healthcare will provide its advanced analytics solution, DenialsIQ, whereas Accenture will bring in its experience and expertise in the field of consulting. The new solution is expected to help healthcare providers, including large health systems, physician groups and hospitals, to ascertain the effects of claims management on financial performance and how proper action can help to redesign workflows and financial operations.

The Healthcare industry has been struggling to manage claims denials for a long time. Per a research by Accenture, for every one in five claims that’s denied, it will cost a typical health system $25 per claim to re-process on average. Now, for a health system that is worth a billion dollar, cutting down on claims denials can lead to a 0.5–1% improvement in operating margin, amounting to $5–10 million annually.

General Electric’s DenialsIQ will assist in the smooth functioning of this collaboration. DenialsIQ is an advanced analytics solution from GE Healthcare that uncovers unseen trends from within claims denials to help provider organizations improve financial performance. This system will show administrators hidden patterns and root cause factors before medical claims denials negatively impact the revenue cycle.

Leveraging General Electric’s DenialsIQ solution, Accenture will offer its services in three types of revenue cycle engagements. The collaboration is likely to improve the revenues of both the companies in the long run.

General Electric carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the industry include CLARCOR Inc. (NYSE:CLC) and Honeywell International Inc. (NYSE:HON) . Both stocks carry a Zacks Rank #2 (Buy).