The health sector comprises a wide range of distinct elements and procedures. Data is something we rarely discuss, yet it is unquestionably an essential component of electronic data interchange solutions. A consistent system is required to process the large amount of health informatics.

With established message formats and standards, electronic data exchange (EDI) transactions safely transport data between healthcare organizations, insurers, and patients. The EDI system decreases data exchange and interpretation costs, addresses conversion problems, and enhances healthcare interoperability. All EDI transactions in the healthcare industry must adhere to common standards in order for health plans, clearinghouses, and healthcare providers to exchange medical records electronically in a HIPAA-compliant manner. Electronic health records are secure and accurate thanks to EDI solutions. All parties involved in the integration of medical EDI must adhere to precise data specifications. As an illustration, if the data is translated into a language that cannot be understood by humans before being sent to a computer that will receive it. Electronic data solutions assign standard codes to each documentation set they use.

Benefits :

·       Greater efficiency: EDI processing in the healthcare industry facilitates quick and safe payment transactions. The EDI standards for healthcare eliminate the need for manual data entry because everything is handled by a computer. As a result, utilising EDI transactions, the data can be automatically entered into the required systems.

·       Increased accuracy: When healthcare automation is used, electronic data interchange transactions improve data management accuracy. Multiple parties can obtain reliable information and reliably manage population health thanks to cloud-based EDI.

·       Standardization : EDI standardization helps to keep the various available formats from becoming confusing. EDI standards guarantee that all parties adhere to a common format for exchanging and distributing documents between EDI partners, much as telehealth and mHealth practises.

·       Cost effectiveness: electronic data interchange in healthcare industry are more efficient and accurate, which leads to cost savings. Clinicians can save $1.49 on each claim by using an EDI system. According to CAQH analysis, the healthcare industry as a whole could save $1102 billion annually, plus an additional $13 billion.