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Healthcare & Pharmaceutical

Most major companies are moving toward doing the majority of their typical business transactions electronically. As the benefits become more obvious and accessible, in order to keep pace with today's business world, incorporating EDI into the business structure has become nearly mandatory. EDI is widely used in healthcare, manufacturing, shipping, warehousing, utilities, construction, petroleum, food processing, insurance, financial, metals, pharmaceutical, retailing, government, and textiles among other industries. 

 

Transko is a one-stop source for the solution of  your EDI challenges.  We can help you with building interfaces or implementing transactions sets  or we can design and install a complete turn-key product.

 

Healthcare

 

Before the adoption of the HL7 standards, interfacing two healthcare applications involved negotiations with virtually no ground rules. Vendors would design their own proprietary data exchange  and minor differences between vendor formats would become a major source of disagreement and delay.  Health Level 7 (HL7) prescribes a standard, structured messaging format for the healthcare industry. 

 

Although it is a structured protocol, HL7 is  flexible because it doesn't necessarily recommend that a complete implementation of an interface must include support for the entire hierarchy of protocol features. HL7 is similar to X12 in as much as its architecture is hierarchical, moving from high-level groupings and structures to a set of several hundred data fields. Each level of the hierarchy serves a different organizing purpose.

 

HL7’s purpose is to facilitate communications in healthcare settings. The primary goal is to provide standards for the exchange of data among healthcare computer applications that eliminate or substantially reduce the custom interface programming and program maintenance that may otherwise be required.

 

Under HIPAA the US Government has adopted nine of the X12 standards as the EDI protocol to exchange information with healthcare providers regarding  health insurance claims.  Consequently healthcare providers' information systems operating on HL7 standards need to establish the appropriate interface to the X12 environment.

 

X12 Transaction Set  #

Benefit Enrollment and Maintenance

834

Health Care Claim

837

Health Care Claim Payment/Advice

835

Health Care Claim Status Notification

277

Health Care Claim Status Request

276

Health Care Eligibility/Benefit Information

271

Health Care Eligibility/Benefit Inquiry

270

Health Care Service Review Information

278

Patient Information

275

 

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This industry which is also covered under HIPAA and by FDA's strict regulations is making ample use of the capabilities and flexibilities afforded by EDI.  Mergers between companies (in some cases from different countries) and Electronic Commerce are business situations where EDI with a Data Interface Engine becomes an efficient and effective operational tool. The following table shows a typical application of X12 transactions implemented by a major pharmaceutical company. 

Business Group

X12 

Description

Accounts Payable

110

Air Freight Details and Invoice

 

210

Motor Carrier Freight Details and Invoice

 

810

Invoice

 

811

Consolidated Service Invoice/Statement

 

820

Payment Order/Remittance Advice

 

820

Payment Order/Remittance Advice (ACH)

 

831

Application Control Totals

 

997

Functional Acknowledgement

 

Accounts Receivable

820

Payment Order/Remittance Advice

 

823

Lockbox

997

Functional Acknowledgment

 

Consumer 

213

Motor Carrier Shipment Status Inquiry

 

214

Transportation Carrier Shipment Status Message

 

810

Invoice

 

850

Purchase Order

 

856

Ship Notice/Manifest

 

864

Text Message

 

875

Grocery Products Purchase Order

 

880

Grocery Products Invoice

 

997

Functional Acknowledgment

Purchasing

850

Purchase Order

 

997

Functional Acknowledgment

 

Internal Operations

213

Motor Carrier Shipment Status Inquiry

 

214

Transportation Carrier Shipment Status Message

 

810

Invoice

 

832

Price/Sales Catalog

 

844

Product Transfer Account Adjustment

 

849

Response To Product Transfer Account Adjustment

 

850

Purchase Order

 

852

Product Activity Data

 

997

Functional Acknowledgment

 

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