The cost of modernization

* Medicare could lose $140 million a year in interest if the Health Care Financing Administration reduces the number of days doctors must wait for payment for services. Currently, the average claim takes 18 days to turn around, even though more than 90 percent of all claims are handled electronically. A new system would cut that down to five days, but it also would reduce the interest Medicare earns while holding on to the money.

* Health care providers would have to invest in systems that are compatible with the government's - an increased business cost likely to be passed on to patients.

* Security breaches could increase because the system would provide immediate and unprecedented electronic access to claims.

Featured

  • IT Modernization
    Eisenhower Executive Office Building (Image: Wikimedia Commons)

    OMB's user guide to the MGT Act

    The Office of Management and Budget is working on a rules-of-the-road document to cover how agencies can seek and use funds under the MGT Act.

  • global network (Pushish Images/Shutterstock.com)

    As others see us -- a few surprises

    A recent dinner with civil servants from Asia delivered some interesting insights, Steve Kelman writes.

  • FCW Perspectives
    cloud (Singkham/Shutterstock.com)

    A smarter approach to cloud

    Advances in cloud technology are shifting the focus toward choosing the right tool for the job and crafting solutions that truly modernize systems.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.