Hospital System Acquires Lumedic

Providence St. Joseph Health (PSJH) https://www.psjhealth.org with 51 hospitals, 829 physician clinics, along with partners employs more than 119,000 caregivers serving seven states. It was announced at the 2019 HIMSS Annual Conference that the hospital system has acquired Lumedic https://lumedic.io, a next generation revenue cycle management platform based on blockchain technology.

Lumedic, a Seattle-based healthcare technology company is transforming revenue cycle management process for modern payers and providers. PSJH will be the first integrated provider-payer system to establish a scalable blockchain platform able to transform claims processing and enhance interoperability between providers and payers.

Reducing inefficiencies in Revenue Cycle Management (RCM) has long been a challenge for the healthcare industry. Revenue cycle inefficiencies were responsible for more than $500 billion in U.S healthcare costs in 2018 alone. This was largely due to industry complexities and manual processes, according to a McKinsey company analysis.

Traditional health systems and hospital revenue cycles processes frequently rely on physical correspondence and fax machines for sending medical records, legacy systems for data storage, which results in employees spending hours calling insurers on the status of claims.

Based on blockchain, Lumedic builds on distributed ledger technology, smart contracts, and machine learning to deploy an efficient, secure, and trusted end-to-end platform for revenue cycle management. Now payers and providers connecting to Lumedic’s intelligent network will be able to share trusted information and collaborate on integrated business processes.

In other news in January, Providence Ventures the venture capital arm of PSJH, http://www.providenceventures.org announced a second $150 million healthcare venture capital and growth equity fund. Providence Ventures seeks early and growth-stage healthcare companies specializing in Health IT, technology-enabled services, medical devices, and healthcare services.